New York, Feb 23, 2026, 10:14 EST — Regular session.
- Microsoft slipped around 2% shortly after the open, part of a wider retreat among major tech names.
- Investors stayed cautious, unsettled by renewed uncertainty over U.S. tariffs.
- Nvidia’s results, due Feb. 25, are shaping up to be a major checkpoint for traders betting on AI-linked stocks.
Microsoft Corp shares slipped 2.2% to $388.60 during early Monday trading, moving down alongside other mega-cap tech stocks as investors faced fresh doubts around U.S. trade policy.
Microsoft (MSFT.O) carries significant heft in the big U.S. indexes, meaning even small swings have an outsized effect on the broader market. The stock now serves as a barometer for investor anxiety over the pace of corporate spending on cloud computing and artificial intelligence.
Stocks stumbled out of the gate after President Donald Trump rolled out a fresh 15% blanket tariff, coming directly on the heels of a U.S. Supreme Court decision that invalidated his previous wider tariffs. The Dow Jones Industrial Average started down 89.4 points, with the S&P 500 easing 0.12% and the Nasdaq off 0.20%. (Reuters)
The Supreme Court tossed out Trump’s emergency tariffs on Friday. Within hours, he rolled out a 10% tariff on all other countries, bumping that up to 15% by Saturday. “The tariff landscape is now more uncertain than before,” said Rodrigo Catril, senior FX strategist at National Australia Bank. After the weekend’s move, the Yale Budget Lab put the average effective tariff at 13.7%. The 15% rate, according to the group, should expire after 150 days, citing the Trade Act of 1974. (Reuters)
Tariff chatter couldn’t come at a trickier moment for Microsoft. The company’s got hardware—think Surface PCs, Xbox consoles—moving through its pipeline, while it’s also channeling big investments into far-flung data centers built on expansive global supply chains.
Investors are weighing Microsoft’s latest changes in its gaming leadership. Phil Spencer, who has led the gaming unit, is stepping down, with insider Asha Sharma taking over as CEO. Xbox president and COO Sarah Bond is also departing. “Since then we’ve been talking about succession planning,” CEO Satya Nadella said. D.A. Davidson’s Gil Luria notes this leadership shuffle is happening as AI “becomes a bigger element in game development.” (Investing.com)
Since late January, Microsoft shares have seen some choppy moves. The company pointed to record capex—think data centers and gear—as it ramps up for AI, but investors weren’t sold on the cloud revenue growth. After the report, the stock took a hit. (Reuters)
The stock kicked off Monday at $395.00, then swung between $387.41 on the low end and $397.12 at its peak. Trading volume topped 8 million shares.
Nvidia’s earnings, coming up Wednesday, Feb. 25, are the next big test for AI-tied stocks, with traders sizing up the report as a pulse check for the whole sector. (Reuters)
The risk cuts both ways. More tariff surprises might keep volatility on edge. On the other hand, if Nvidia delivers a weaker update, it could reignite concerns that AI investment is outpacing what the market actually needs right now.
Investors are set to parse out specifics on the 15% tariff’s rollout, with eyes turning next to Nvidia’s Feb. 25 results for signals on Microsoft and the rest of the big tech group.
