Microsoft stock takes a hit following the Fed’s hawkish dot plot
FUNDAMENTAL OVERVIEW:
Microsoft (MSFT) shares tumbled on Wednesday, mirroring a broader market decline, as the Federal Reserve’s more hawkish stance on 2025 interest rates prompted Wall Street to reassess the post-election rally.
MSFT stock ended the session down 3.76% at $437.39, underperforming both the Dow Jones Industrial Average (DJIA), which fell 2.58%, and the NASDAQ, which dropped 3.56%.
Despite this short-term decline, analysts maintain a positive outlook on Microsoft’s long-term prospects. UBS, for instance, has raised its price target for MSFT to $525, up from $500, reiterating a ‘Buy’ rating. This adjustment reflects expectations of growth in Microsoft’s Azure services.
Additionally, industry experts anticipate that advancements in generative AI and autonomous AI agents will drive growth in the enterprise software sector, benefiting companies like Microsoft. Evercore analysts have identified Microsoft, along with Salesforce and Oracle, as top picks expected to lead a rally in enterprise software stocks into 2025.
MSFT stock appears set to retreat to the $400–$425 demand zone, as Wednesday’s sell-off drove the price below the mid-September resistance level of $441.50.
MICROSOFT TECHNICAL ANALYSIS DAILY CHART:
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