Shares of Amazon slumped Monday following reports the tech giant planned layoffs and the broader markets closed modestly lower.
The Dow Jones Industrial Average fell 211.16 points, or 0.63%, to close at 33,536.70. The S&P 500 dropped 35.68 points, or 0.89%, to close at 3,957.25, and the Nasdaq Composite was down 127.11 points, or 1.12%, to close at 11,196.22.
The New York Times reported Amazon planned to lay off about 10,000 corporate employees, the latest technology company to initiate job cuts and hiring freezes amid falling profits post-pandemic.
Amazon (AMZN) shares fell $2.30, or 2.28% to close at $98.49.
On Thursday, stocks recorded their biggest weekly gain in more than five months after the Consumer Price Index showed inflation slowed faster in October than analysts expected. The Federal Reserve has hiked interest rates seven times this year and indicated further increases are likely to slow down inflation.
Some of the tech stocks that also declined Monday included Uber (UBER), which closed at $29.10, down $0.05, or 0.17%. Alphabet’s (GOOG) price of shares fell $0.70, or 0.72%, to close at $96.03.
“The mood of investors is cautiously optimistic,” Sylvia Jablonski, CEO and chief investment officer of Defiance ETFs, told CNBC. “The general sentiment I’m hearing out there is that traders are more likely to expect a sustainable run from this point on — maybe it won’t be the face ripper that we hope for but sustainable upside — through the end of the year before we hit 2023 and you start to really see what the Fed hikes have done to the economy and how fragile our earnings are.”