Why Microsoft Stock Surged 10.4% Last Month But Is Sinking in June

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Keith Noonan, The Motley Fool

Mon, June 8, 2026 astatine 8:28 AM CDT 3 min read

Microsoft (NASDAQ: MSFT) banal closed retired May's trading with a double-digit gain, up 10.4%. The S&P 500 gained 5.2% implicit the aforesaid period, and the Nasdaq Composite roseate 8.4%.

Microsoft's valuation moved higher successful conjunction with bullish momentum for the broader marketplace past month, but affirmative coverage from analysts besides played a relation in the stock's gains. Despite a favorable backdrop for tech stocks in this year's trading, the tech giant's banal is inactive down astir 14% successful 2026.

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Microsoft saw a double-digit summation successful a large period for tech stocks

May was a period of strong bullish trading for artificial intelligence (AI) stocks, and Microsoft's stock terms moved higher successful conjunction with the trend. While the company's valuation has faced pressures this twelvemonth arsenic investors assessed the anticipation that immoderate of the company's offerings could beryllium astatine hazard of AI-related disruption, past month's trading saw investors determination backmost into the stock.

Microsoft was coming disconnected a beardown quarterly study published astatine the extremity of April, which saw the concern grounds non-GAAP (adjusted) net per stock of $4.27 connected gross of $82.89 billion. The mean expert estimation had targeted adjusted net per stock of $4.06 and income of $81.39 billion. On the different hand, the midpoint of the company's guidance for gross between $86.7 cardinal and $87.8 cardinal fell abbreviated of the mean expert estimate's call for $87.53 cardinal in the period. While Microsoft initially saw sell-offs pursuing the report, the banal bounced backmost successful May's trading.

Why Microsoft banal has moved little successful June

Amid a bearish backdrop for the broader market, Microsoft has fixed up overmuch of past month's gains aboriginal successful June's trading. As of this writing, the banal is down astir 7.5% this month. Meanwhile, the S&P 500 is down 2.6%, and the Nasdaq Composite is disconnected 4.7%.

Coming connected the heels of a almighty rally, AI stocks person gotten deed with a pullback recently -- and macroeconomic concerns person played a large relation successful the sell-off. The Bureau of Labor Statistics published its jobs study for May past Friday, and the study actually showed that occupation maturation successful the play was acold stronger than anticipated. While it whitethorn look counterintuitive, investors are disquieted that the beardown jobs study could beryllium a antagonistic for the banal market.