SoundHound AI Surges 5.24% on $260M Volume Ranking 424th in Daily Liquidity as SaaS Sector Rebounds on Fed Rate Cut Hopes

On August 4, 2025, SoundHound AI (SOUN) surged 5.24% with a trading volume of $260 million, ranking 424th in daily liquidity. The move followed a broader rebound in the SaaS sector driven by heightened expectations of a Federal Reserve rate cut. July’s weaker-than-expected nonfarm payrolls report—adding just 73,000 jobs—sparked speculation of a September rate reduction, pushing probabilities from 40% to over 80%. This environment favored growth stocks, as lower rates typically enhance the present value of future earnings.

SoundHound’s volatility remains pronounced, with 89 price swings exceeding 5% in the past year. The recent gain followed a 4% drop three days earlier amid concerns over new U.S. tariffs on imports from 68 countries and the EU, which triggered a broader market sell-off. The tech-heavy Nasdaq index weakened further as trade tensions and a cooling labor market fueled a “risk-off” sentiment, prompting investors to retreat from growth-oriented sectors. Despite the rally, SOUN remains down 46.6% year-to-date and trades 55.6% below its 52-week high.

A backtested strategy of purchasing the top 500 most liquid stocks daily and holding for one day returned 166.71% from 2022 to the present, far outpacing the benchmark’s 29.18%. This highlights the role of liquidity concentration in amplifying short-term gains, particularly in volatile markets where macroeconomic shifts and investor behavior create trading opportunities.