The stock market suffered a setback on Wednesday as value dropped across major Wall Street benchmarks, including the Dow, Nasdaq, and the S&P 500.
Microsoft's forecast on its lucrative cloud business spooked investors and contributed to the dip, which was also worsened by the bleak quarterly report from Boeing.
Microsoft shares fell by 1.2%, while Apple, Alphabet, and Tesla declined anywhere between 0.4% and 3%.
The New York Times reported in its article that tech layoffs have apparently accelerated throughout the second half of 2022.
Amazon announced the laying off of 18,000 employees, while Lyft disclosed its plan to dismiss 700 of its workers.
Meta and Twitter also said that they are cutting thousands of employees.
Alphabet intends to lay off 12,000 workers, Microsoft plans to cut 10,000, and Spotify mentioned plans to reduce staff by 6 percent, or about 600 people.
The NY Post had a separate take on the matter, noting that the Dow lost 356 points, the Nasdaq sank 1.8%, and the S&P 500 saw 1.3% decrease.
Microsoft's share price fell by 3%, with Amazon, Salesforce, and ServiceNow, whose businesses rely majorly on cloud services, falling between 2.5% and 4.5%.
In addition, major growth stocks, including Apple, Alphabet, and Tesla, tumbled, dropping anywhere between 1.5% and 3%.
While these articles differ in scope, both articles agree that technology stocks experienced a drop, with layoffs in the tech sector historically high.