NEW YORK, Jan 18, 2026, 09:37 EST — Markets have shut down for the day.
Elon Musk is pursuing up to $134 billion from OpenAI and Microsoft Corp, alleging they reaped “wrongful gains” from his early investment in the AI lab, according to a federal court filing. OpenAI dismissed the lawsuit as “unserious,” while Microsoft declined to comment. Microsoft shares closed Friday up 0.7% at $459.86. 1
Timing is crucial as Microsoft approaches its next earnings report, with less than two weeks to go. Investors are eager to see if AI investments are delivering returns quickly enough. The company plans to release its fiscal 2026 second-quarter results after the market closes on Wednesday, Jan. 28. CEO Satya Nadella and CFO Amy Hood will hold a webcast later that day. 2
Microsoft is now a key barometer for the corporate AI sector, with its stock responding more to shifts in demand and cost sentiment than to product announcements. A new legal battle linked to OpenAI could stir up volatility—and sometimes push for greater transparency—just as investors position ahead of earnings.
The broader market showed signs of caution ahead of the long weekend. Wall Street’s major indexes ended Friday with modest weekly declines as investors digested President Donald Trump’s remarks about adviser Kevin Hassett and their potential implications for the next Federal Reserve chair. “Most investors will take that as a win,” said Anthony Saglimbene, chief market strategist at Ameriprise Financial. 3
On Friday, Microsoft shares fluctuated from $456.48 to $463.19, with roughly 34.25 million shares traded. The stock ended the session at $479.28 on Jan. 9, marking a roughly 4% decline over the past week. 4
On Friday, it also outpaced several large-cap rivals. Apple dropped 1.04%, Alphabet dipped 0.84%, while Microsoft gained 0.70%. This divergence highlighted just how picky investors have grown with megacap tech stocks. 5
On Tuesday, as trading resumes, investors will be on the lookout for follow-up filings or statements that clarify Musk’s damages claim and whether it imposes fresh limits on OpenAI’s operations. Regardless of the outcome, the spotlight stays on Microsoft’s stake in OpenAI — and that alone can shift market sentiment fast.
Earnings continue to dominate. Traders are tuned in for updates on cloud demand, how quickly companies must invest to boost AI capacity, and whether costs are stabilizing or still climbing.
Still, the Musk case might linger until April without shaking Microsoft’s OpenAI relationship, so the stock will likely move mostly on rates and earnings. Any cautious guidance, margin squeeze, or increased spending would sting more than legal drama.
Microsoft’s next big test comes Jan. 28, when it reports earnings after the bell and its execs take questions on the call. Tuesday’s open will reveal if the legal news turns into a tradeable risk or simply another item investors shrug off.
