Shares of technology companies fell, but not by as much as the broad market, as traders continued to buy back into the sector that saw the biggest declines in 2022.
"Historically speaking in times of economic slowdown, and during kind of pre-recessionary periods, especially mild recessions, growth has outperformed value simply because investors are willing to pay off for growth where it exists when it's not abundant," said Oliver Pursche, senior vice president at financial advisory Wealthspire.
Microsoft confirmed plans on Wednesday to lay off some 10,000 workers, equivalent to around 5% of the company's global workforce.
Mr. Pursche said there's a danger that major employers overreact to fears about the Federal Reserve's rate hikes having an impact on demand, and lay off more workers than necessary.
Global IT spending contracted 0.2% in 2022, dropping to $4.38 trillion-a rare instance of corporations spending less on digital business tools than in the previous year, according to IT consulting and research firm Gartner Inc.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-18-23 1712ET
