New York, Feb 9, 2026, 10:09 EST — Regular session
- Microsoft shares rose about 1.4% to $406.68 in morning trade, after closing at $401.14.
- The stock’s move comes amid renewed scrutiny of software names as fast-moving AI tools raise disruption fears.
- Investors are watching U.S. jobs and inflation data later this week for cues on rates and tech valuations.
Microsoft Corporation shares rose on Monday, up about 1.4% at $406.68, after swinging between $400.99 and $409.84 in early trade as buyers returned to battered software bellwethers.
The bounce matters because Microsoft is a top weight in major U.S. indexes and a barometer for cloud and workplace software demand at a time when investors are reassessing what AI means for the sector’s margins and pricing power.
It also lands at the start of a week packed with macro tests that can jolt rate expectations. Higher yields tend to hurt long-duration growth stocks by squeezing the value of future earnings.
U.S. stocks opened lower on Monday, with the Dow, S&P 500 and Nasdaq all slipping at the bell as investors stayed cautious after last week’s tech volatility.
In a Reuters “Week Ahead” note, Edward Jones strategist Angelo Kourkafas said “rotation is the dominant theme” as money moves away from tech, while Manulife John Hancock’s Matthew Miskin pointed to a more selective market, saying, “Before, it was ‘AI lifted all ships.’” The Reuters report also flagged a sharp drop in the S&P 500 software and services index over a little more than a week, with Microsoft among the names drawing scrutiny after its latest results. Reuters
Microsoft’s most recent earnings release showed how much weight investors are putting on cloud growth and AI uptake. The company reported revenue of $81.3 billion for the quarter ended Dec. 31, up 17%, while “Azure and other cloud services revenue increased 39%,” Microsoft said. Chief executive Satya Nadella said the firm was “only at the beginning phases of AI diffusion,” and finance chief Amy Hood said “Microsoft Cloud revenue crossed $50 billion this quarter.” Microsoft
The AI backdrop shifted again on Monday after Reuters reported CNBC’s account of an internal message from OpenAI CEO Sam Altman saying ChatGPT was back to exceeding 10% monthly growth. Reuters said it could not independently verify the report; OpenAI did not immediately respond to a request for comment.
Even with Monday’s uptick, the tone around software remains tense. A Reuters analysis said the software and services group has lagged the S&P 500 by nearly 24 percentage points over the past three months, while options markets are still pricing big swings — implied volatility, a gauge of expected moves, remained elevated — and short positioning in a major software ETF hovered near record levels.
But the rebound can turn fast. If bond yields climb on hotter data, or if investors decide AI will compress software profits more than expected, the bid under large-cap names like Microsoft can thin out quickly.
Traders’ next checkpoints are Wednesday’s U.S. employment report and Friday’s consumer price index, with Fed officials also due to speak this week — events that can reset the rate outlook that has been steering tech multiples.
