Microsoft Kicks Off Tech Earnings Set to Slump Most Since 2016
- Tech companies are cutting costs into crucial reporting season
- Analysts have slashed earnings estimates on sector for months
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US technology stocks are about to hit their next hurdle when earnings season for the most influential segment of the S&P 500 Index gets underway in the coming week: vanishing profits.
The tech-heavy Nasdaq 100 Stock Index enters this crucial stretch amid a darkening backdrop that short-circuited a strong start to the year. Underscoring the risks ahead, Microsoft Corp., which kicks off the group’s reporting Tuesday, joined Amazon.com Inc. in starting to cut thousands of jobs this week as sales slow. Google parent Alphabet Inc. followed with plans of its own to shrink its workforce.