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. 1
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. 2
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.” 3
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. 4
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. 5
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. 6
