What Happened?

A number of stocks fell in the afternoon session after investors continued to distinguish between the winners and losers in the artificial intelligence boom, leading to a broad sell-off. 

The Nasdaq fell 1.5%, while the S&P 500 and Dow Jones Industrial Average also saw significant declines. This market shift indicated that investors were becoming more selective, moving beyond the initial excitement surrounding AI. In addition, a stronger-than-expected U.S. jobs report dampened investor expectations for near-term interest rate cuts from the Federal Reserve. Data showed the U.S. labor market remained resilient, with non-farm payrolls indicating impressive job creation and falling unemployment. This positive economic signal led markets to re-evaluate the timeline for monetary policy easing, which is the process by which a central bank reduces interest rates to stimulate economic growth. Investors priced in the first potential rate cut for July, a shift from previous expectations of June. This delay created a headwind for growth-oriented sectors like software, as higher interest rates can reduce the present value of future earnings.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Data Analytics company Amplitude (NASDAQ: AMPL) fell 7.8%. Is now the time to buy Amplitude? Access our full analysis report here, it’s free.
• Hospitality & Restaurant Software company Toast (NYSE: TOST) fell 6.1%. Is now the time to buy Toast? Access our full analysis report here, it’s free.
• Advertising Software company Zeta Global (NYSE: ZETA) fell 6.8%. Is now the time to buy Zeta Global? Access our full analysis report here, it’s free.
• Data Infrastructure company Teradata (NYSE: TDC) fell 10.5%. Is now the time to buy Teradata? Access our full analysis report here, it’s free.
• Automation Software company SoundHound AI (NASDAQ: SOUN) fell 6%. Is now the time to buy SoundHound AI? Access our full analysis report here, it’s free.

Zooming In On Teradata (TDC)

Teradata’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. But moves this big are rare even for Teradata and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 3 days ago when the stock gained 2.9% on the news that analysts suggested that the recent "SaaSpocalypse" sell-off had pushed valuations into deeply oversold territory, sparking a wave of opportunistic buying. While the sector had been hammered in early 2026 by fears that autonomous AI agents would replace traditional seat-based subscriptions, institutional investors began rotating back into "sticky" incumbents. This shift was fueled by a Barclays report arguing that corporate transitions away from legacy systems take years, not weeks, providing a protective moat for established providers in compliance and governance.

Teradata is up 13.2% since the beginning of the year, but at $33.62 per share, it is still trading 11.2% below its 52-week high of $37.88 from February 2026. Investors who bought $1,000 worth of Teradata’s shares 5 years ago would now be looking at an investment worth $682.09.

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