CNBC Daily Open: Tech layoffs continue to hit

Asia markets largely rose on Wednesday tracking Wall Street’s advance as investors digested corporate earnings. Shares of a large bank spiked 2% after posting quarterly net profit that beat estimates. Overnight, U.S. stocks gained ground as the major indexes rebounded from the previous session. The S&P 500 was up 0.23%, while the Nasdaq Composite closed 0.07% higher. The 30-stock Dow jumped 0.37%.

Debt crisis

Developed countries as well as emerging markets face a debt crisis that will span the next decade, said an economist, as global borrowings reached a record $307.4 trillion last September. Some bigger nations that aren’t tackling their debt issues “will die a slow fiscal death,” the economist further noted.

Silver lining

Silver is set for a “terrific year” with prices potentially reaching a decade-high. Like gold, silver prices tend to have an inverse relationship with interest rates. With expectations that central banks could start cutting rates this year, silver may get a boost.

Joint sports streaming

Several media companies plan to launch a joint sports streaming platform later this year. Consumers can subscribe directly using a new app. The service is “a major win for sports fans, and an important step forward for the media business,” said a company CEO in a statement.

Betting on electric vehicles

An investment professional expects a Hong Kong-listed company to get ahead in the electric vehicle race. The company is “for sure going to emerge a winner,” the professional said, adding that “in three to five years, I could easily see the company at twice the current price.”

Tech job cuts

Since the start of the year, tech layoffs have continued to mount. A recent example is a well-known tech company that has cut about 6% of its workforce — that’s about 440 jobs.

This comes a day after another tech company said it will trim about 10% of its global workforce, or around 500 employees. Other tech firms have already announced job cuts this month.

The frantic pace of layoffs is Silicon Valley’s attempt to become leaner after over expanding during the pandemic’s peak.

High interest rates and inflation pressures have also prompted companies to tighten their belts as costs rise.

On top of that, some tech firms want to invest more heavily in developing new products and are trimming headcount. This has been evident as a few well-known tech companies have downsized recently.

But investors view the layoffs as a good thing. Companies, especially large tech firms, have been rewarded for their cost discipline.

So long as investors remain bullish on tech, the drumbeat of job cuts will only continue to gather steam.