Tech Shares Rise Amid US Interest Rate Bets and Earnings Reports

Tech shares rose Friday amid rising odds of interest rate cuts in the US and strong earnings reports. SoundHound AI's stock increased after beating expectations, while Apple gained due to positive analyst commentary and recent earnings. Pinterest's stock fell after missing analyst expectations in its 2Q earnings.

Tech shares experienced a significant rally on Friday, August 8, as optimism about potential interest rate cuts from the Federal Reserve and strong earnings reports from major companies drove market sentiment. The Nasdaq Composite (.IXIC) closed at a record high for the second consecutive day, buoyed by gains in tech-related shares.

The S&P 500 technology index (.SPLRCT) also rose, with shares of Apple (AAPL.O) extending recent gains. The tech giant's stock climbed amid positive analyst commentary and the announcement that Apple would invest an additional $100 billion in the U.S., bringing its total commitment to $600 billion over the next four years [1].

Gilead Sciences (GILD.O) shares also rose after the company raised its full-year financial outlook. The S&P 500 technology index (.SPLRCT) and the S&P 500 (.SPX) registered gains for the week, with the S&P 500 (.SPX) ending at 6,389.75 points and the Nasdaq Composite (.IXIC) at 21,451.42 points [1].

Investors also evaluated President Trump's interim pick for a Federal Reserve governor, Council of Economic Advisers Chair Stephen Miran, who was nominated to a short-term board seat following Adriana Kugler's abrupt exit. Miran's nomination comes as the Federal Reserve is expected to cut rates, with traders pegging about a 90% chance of the first rate cut hitting next month [1].

Palantir Technologies (PLTR.O) reported its first $1 billion in quarterly sales, marking a significant milestone for the company. The company's stock price rose above $170 before the opening bell, reflecting strong earnings and robust government contracts. Palantir's adjusted earnings report indicated earnings of 16 cents per share on $1 billion in revenue, surpassing LSEG projections [2].

SoundHound AI (SOUN) also reported strong earnings, with its stock increasing after beating expectations. The company delivered growth across all key businesses, including AI for automotive, enterprise AI for customer service, and AI automation for restaurants. SoundHound AI's second-quarter revenue was $42.7 million, an increase of 217% year-over-year [3].

In contrast, Pinterest (PIN) saw its stock fall after missing analyst expectations in its second-quarter earnings. The company's stock price declined amid concerns about its growth prospects and the competitive landscape in the social media space.

References:
[1] https://www.reuters.com/business/nasdaq-posts-record-closing-high-with-tech-gains-rate-cut-optimism-2025-08-08/
[2] https://www.ainvest.com/news/palantir-earnings-soar-quarterly-sales-hit-1-billion-government-spending-cuts-2508/
[3] https://investors.soundhound.com/news-releases/news-release-details/soundhound-ai-reports-record-second-quarter-all-time-high-427