SoundHound AI Inc (NASDAQ:SOUN) experienced a significant drop in its stock price during Thursday's trading session, plummeting 6.77% as investors anxiously await the company's third-quarter earnings report scheduled for release after market close. The sharp decline reflects growing investor uncertainty and broader market pressures.

The sell-off in SoundHound AI shares comes amidst a challenging market environment, with major indexes trading in the red due to macroeconomic uncertainties. Adding to the tension, Federal Reserve official Austan Goolsbee highlighted concerns about delayed inflation data caused by a prolonged government shutdown, complicating the Fed's economic assessment and dampening hopes for potential rate cuts.

As SoundHound AI prepares to unveil its Q3 results, Wall Street analysts anticipate a loss of 6 cents per share on revenue of $40.33 million. The company's performance will be closely scrutinized, particularly in light of its strong second-quarter results and recent strategic partnerships with Red Lobster and French insurer Apivia Courtage. Investors will be keen to see if SoundHound AI can maintain its momentum and provide robust guidance for the future, which could potentially reverse the current downward trend in its stock price.