Microsoft (MSFT) Drops 2.55% as CEO Sells $75M Stake, Macroeconomic Fears Weigh on Tech Sector

Microsoft (MSFT) shares fell 2.55% on September 6, 2025, hitting their lowest level since July 2025, with an intraday drop of 3.07%. The decline reflected a confluence of market sentiment shifts, macroeconomic concerns, and competitive pressures within the tech sector.

CEO Satya Nadella’s sale of $75.3 million in Microsoft stock via a pre-arranged trading plan triggered investor unease, raising questions about short-term confidence in the company’s trajectory. While such sales are common for tax planning, the timing amplified fears of overvaluation or near-term operational challenges. The move aligned with broader tech sector weakness, as the Nasdaq Composite dipped 0.2%, driven by weak U.S. jobs data and speculation about potential Federal Reserve rate cuts.

Macroeconomic uncertainty intensified as August nonfarm payrolls reported just 22,000 jobs—far below expectations—and new Trump-era tariffs on semiconductors added cost risks for Microsoft’s cloud and AI infrastructure. These factors, coupled with a shift toward risk-off behavior, weighed on growth-dependent tech stocks. Meanwhile, competitive dynamics in AI and cloud computing emerged as critical headwinds. OpenAI’s plans to develop an AI jobs platform and its collaboration with Broadcom on custom chips signaled potential erosion of Microsoft’s ecosystem advantages, particularly in LinkedIn’s professional networking domain.

Technical indicators further exacerbated the sell-off, with Microsoft’s stock breaching key support levels such as the 30-day moving average and Bollinger Bands’ lower boundary. The RSI dipped into oversold territory, and leveraged trading activity amplified volatility. Despite these short-term pressures, Microsoft’s long-term fundamentals remain robust, with Q1 2025 results showing strong cloud and AI revenue growth. However, its elevated valuation—reflected in a P/E ratio of 36.02x—made it more susceptible to profit-taking and macroeconomic risks compared to peers like Oracle, which outperformed the sector.

Historical data suggests Microsoft’s stock often rebounds 11–15 days after significant declines, but recent volatility underscores structural concerns. Investors are advised to monitor technical levels and sector trends, balancing Microsoft’s resilient AI and cloud growth against near-term macroeconomic and competitive uncertainties.