Shares of Microsoft and Google parent Alphabet (GOOG) plunged Wednesday after the tech titans' released earnings, leading the tech-heavy Nasdaq Composite lower.

The Dow Jones Industrial Average rose 3.36 points, or 0.01%, to close at 31,840.10. The S&P 500 dropped 28.43 points, or 0.74%, to 43,830.68, and the Nasdaq Composite fell 238.12 points, or 2.04%, to 10,970.99.

Analysts were expecting Alphabet's YouTube to report an increase of about 3% in ad revenue, but instead the video site's sales dropped around 2% to $7.07 billion compared to $7.21 billion in the same period a year ago. Alphabet's stock fell 9.63%, or $10.11 a share, to $94.82. It was Alphabet's biggest drop since 2020.

Microsoft's (MSFT) earnings beat analysts' expectations but showed slowing demand for personal computers. Microsoft's reported income of $17.6 billion for the quarter, a decrease of 14% from the year prior. Microsoft's revenue grew 11% to $50.1 billion. But revenue from Window dropped 15% from the previous year, indicating a slow-down of computer sales. Microsoft's stock fell 7.72%, or $19.34 per share, to $231.32.

Some of the tech stocks that declined included Apple (AAPL), which closed at $149.35, down $2.99, or 1.96%. Amazon's (AMZN) price of shares fell $4.94, or 4.10%, to close at $115.66.

"The fact of the matter is, we are heading into, whether we want to call it a recession or not, we're heading into a softer or tighter macro environment," RBC Capital Markets software equity analyst Rishi Jaluria told Yahoo Finance Live.