New York, February 21, 2026, 10:57 EST — Market closed.
- Microsoft ended off 0.3% at $397.23, trailing a wider advance in tech stocks.
- Microsoft tapped Asha Sharma to head up gaming, stepping in as Phil Spencer, who led Xbox for years, retires. Sarah Bond, Xbox’s chief operating officer, is also on her way out.
- Nvidia’s earnings are on deck this week, with traders also keyed in on inflation-driven rate wagers—either of which could jolt big tech.
Microsoft dipped 0.3% Friday, closing at $397.23 — lagging behind the broader market as the session ended. Shares moved in a range from $396.47 up to $402.31, staying well under the 52-week peak of $468.25.
Microsoft’s outsized role in both the Nasdaq and S&P 500 means even minor changes can sway the indexes. Investors, facing a gaming unit leadership shake-up and digesting new moves in policy and inflation, head into Monday with plenty to chew on.
The timing coincides with Wall Street’s ongoing debate over the value of “AI spending” and its speed in generating revenue. For Microsoft, the focus falls on Azure, Copilot, and, more and more, AI integration in areas like gaming.
U.S. equities finished the week on a positive note Friday, with the Supreme Court’s decision to overturn President Donald Trump’s broad tariffs sending stocks higher. Investors faced a weak GDP reading and signs of hotter inflation, but shrugged them off. The Dow climbed 0.47%, the S&P 500 advanced 0.69%, and the Nasdaq rallied 0.90%, Reuters reported. Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder, pointed out that markets viewed tariffs as a drag on both the economy and company profits, though he warned about potential fallout from whatever comes next. (Reuters)
Inflation remains a hurdle. The “core” personal consumption expenditures price index—closely watched by the Federal Reserve and excluding food and energy—climbed 0.4% in December, coming in hotter than economists anticipated, according to Reuters. That print has fueled bets the Fed could hold off on rate cuts until at least June, a scenario that keeps the squeeze on tech names banking on distant earnings growth. (Reuters)
Microsoft’s gaming division took the spotlight late Friday with news that Phil Spencer is stepping down after 38 years at the company. Asha Sharma has been tapped to take over as executive vice president and CEO of gaming, with Spencer set to remain as an advisor into the summer. Sarah Bond, currently president and chief operating officer at Xbox, is also departing. Matt Booty takes on the role of chief content officer. “We will recommit to our core Xbox fans and players,” Sharma said. Satya Nadella, Microsoft’s CEO, noted that the leadership transition has been in the works since last year. Analyst Gil Luria at D.A. Davidson pointed out the move comes as AI increasingly shapes gaming tech. (Reuters)
After Microsoft’s gaming division took in Activision Blizzard and raised Xbox hardware prices amid cost pressures, changes followed. While moves like these don’t typically reshape Microsoft’s earnings model, they do have the power to shift sentiment around a business segment investors track closely for consumer appetite and margin volatility.
Microsoft kicked off the week by rolling out its new dividend schedule. The tech giant set a quarterly payout at $0.91 a share, according to an announcement. That dividend lands on March 12. Shares go ex-dividend Feb. 19. (Source)
Even so, near-term price action probably hinges more on the market’s next signals around AI demand and funding costs than anything tied to Xbox. Tariff policy isn’t out of the picture despite the court decision, while inflation shocks have a way of slamming the priciest stocks if rates start to adjust.
Here’s the risk: if the macro environment stays rough, investors stick to defensive bets, and even a whiff of weaker AI returns could yank expectations lower for the big names that drove the rally. Gaming? Still a weak point if consumers start tightening up on extras and console competition keeps running hot.
Midweek brings the event traders have circled: Nvidia reports results Wednesday, Feb. 25. Eyes are on whether the chipmaker delivers signs of profit from the worldwide AI push, and if the “Magnificent Seven” trade gets its spark back, according to Reuters. (Reuters)
