Microsoft stock today: MSFT ends 2025 lower as traders shift focus to AI and January earnings

Microsoft stock today: MSFT ends 2025 lower as traders shift focus to AI and January earnings

NEW YORK, January 1, 2026, 09:30 ET — Market closed

  • Microsoft shares fell 0.8% in the last session to $483.62.
  • A Wedbush note pointed to FY26 as a key year for Azure and AI deployments.
  • U.S. stocks reopen Friday after the New Year’s Day holiday.

Microsoft Corp shares fell 0.8% to $483.62 in the final trading session of 2025 on Wednesday. The Wall Street Journal

With U.S. markets closed on Thursday for New Year’s Day, investors are using the break to reset positions ahead of Friday’s reopen and a data-heavy start to January. Yahoo Finance

The stock’s late dip mattered because Microsoft is one of the biggest weights in U.S. tech benchmarks, and its move helped pull the sector lower as the Nasdaq slipped 0.76% and the S&P 500 fell 0.74%, Reuters reported. Thin holiday liquidity encouraged profit-taking into the close. Reuters

Microsoft traded between $483.30 and $488.14 on Wednesday, leaving a tight range that traders often use to set early-January support and resistance levels. StockAnalysis

Other large-cap tech names were also softer in the year-end session, with Alphabet’s two main share classes both down modestly, MarketWatch data showed. MarketWatch

Dan Ives, an analyst at Wedbush Securities, wrote that “FY26 for Microsoft remains the true inflection year of AI growth,” arguing Wall Street may still be underestimating Azure’s growth runway. Business Insider

The macro backdrop stayed in focus after U.S. weekly jobless claims fell to 199,000 in the latest report, while investors weighed what a slower labor market means for the Federal Reserve’s next rate decisions. Reuters

Bond markets closed early on Wednesday and are also shut Thursday, keeping liquidity light until Friday’s reopen, MarketWatch reported. That puts extra emphasis on the first big readouts of 2026. MarketWatch

Top of the Friday calendar is the Institute for Supply Management’s manufacturing survey for December at 10:00 a.m. ET, a closely watched gauge of factory activity that can move Treasury yields and rate-sensitive growth stocks. YCharts

For Microsoft, the next major company catalyst is quarterly results, expected on January 28 after the close, according to Yahoo Finance’s earnings calendar. Investors typically key on Azure demand signals and any commentary on AI-related infrastructure spending. Yahoo Finance

Technically, traders have been marking support near $483.30 and resistance around $488.14 from the last session’s low and high, with $490 looming as the next round-number level. Investing

Until those catalysts hit, Microsoft’s early-2026 tape is likely to be driven by how fast dip-buyers return after the holiday pause, and how markets react to incoming data that can shift the rate outlook for high-multiple megacaps.

Stock Market Today

  • India stocks drift; IT cushions FMCG drag as 26,240 hurdle looms
    January 1, 2026, 1:50 PM EST. Indian equities closed the first session of the year modestly higher as gains in IT offset a slide in FMCG after the government imposed a fresh excise duty on cigarettes. The Sensex fell 32 points to 85,188.60, while the Nifty 50 rose 17 points to 26,146.55. Analysts said thin holiday trading and ongoing FII selling kept moves muted, with autos gaining on December sales and value buying supporting IT. Looking ahead, Q3 earnings, budget expectations, and global cues such as the India-US trade deal and potential Fed actions will guide direction; earnings growth remains the key driver for 2026. Technically, resistance sits near 26,240 and support near 26,000.
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