We have just experienced a week of highly dynamic sell-offs in the U.S. stock market. On the last day of this week, we see that the bulls are trying to find their footing. However, the initial signals are not yet conclusive, and a return to further declines is possible.
At the time of publication:
- US500 is up 0.10% to 5,890 points
- US100 is up 0.10% to 20,600 points
- US200 is up 0.05% to 2,145 points
Correction Driven by Big Tech
The direct catalyst for the correction in technology stocks appears to be a combination of political turmoil and the quarterly earnings season. Although companies have reported solid results, they have failed to meet investors’ high expectations.
US500 without Big Tech is performing noticeably better, but this does not change the fact that the broader index is still declining. There is only a slim chance that the growth of other US500 companies will completely offset a potential further sell-off in the semiconductor sector and the largest tech stocks—the capitalization disparities are simply too large.
A chart compares the US500 index excluding the so-called “Mag7” stocks, which include NVDA.US, AAPL.US, MSFT.US, TSLA.US, META.US, AMZN.US, and GOOGL.US.
US100
The sharp declines are particularly visible in the technology stock index. Today, the index is attempting to recover, but given the magnitude of the recent drops, even slight gains will be nothing more than a short-term rebound.
Source: xStation 5
Company News
SoundHound (SOUN.US) gains 6% after Q4 results beat expectations, with revenue rising 101% year-over-year. The company reached the top end of its revenue guidance, driven by strong demand for voice-enabled Agentic AI. It ended the year with nearly $200 million in cash and no debt. SoundHound raised its full-year 2025 revenue outlook to $157M-$177M (midpoint: $167M), exceeding the $165.27M consensus.
HP (HPQ.US) dips 8% after FQ1 results revealed a 2% year-over-year decline in the printing segment. While HP’s FY2025 earnings guidance of $3.45-$3.75 per share (midpoint: $3.60) was slightly above the $3.57 consensus, its FQ2 EPS forecast of $0.75-$0.85 (midpoint: $0.80) missed the $0.86 estimate. The company also announced that over 90% of its North American products will be manufactured outside China by the end of FY2025.
Opendoor Technologies (OPEN.US) declines 7.90% after Q4 results showed sequential revenue decline and wider losses, along with weak guidance. The company expects Q1 2025 revenue between $1.0B and $1.075B, missing the $1.33B consensus. It also forecasts a contribution profit of $40M-$50M, below the $64.4M estimate, and adjusted EBITDA of -$50M to -$40M, worse than the -$29.3M forecast.
Rocket Lab USA (RKLB.US) 7.00% tumbled despite record annual revenue of $436.2M (+78% Y/Y) and Q4 revenue of $132.4M (+121% Y/Y). The stock fell due to soft Q1 2025 guidance, with expected revenue of $117M-$123M, below the $135.67M consensus, and an adjusted EBITDA loss of $33M-$35M.
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