Artem Voloskovets
⬤ Microsoft (MSFT) is going through a meaningful correction, with weekly charts showing the stock sliding close to 20% off its recent highs. The pattern includes two major pullback phases—one during 2024 and another currently developing into early 2026. What makes this noteworthy is just how rare these kinds of drawdowns have been for Microsoft over the years.
⬤ Looking at the chart data, the 2024 decline hit roughly 26% peak-to-trough, while the current correction is tracking at just under 24%. Both moves appear as controlled retracements following strong rallies rather than extended breakdowns. This suggests Microsoft tends to reset periodically after big runs higher, not because of fundamental cracks but as part of its normal price rhythm.
⬤ "Microsoft's core software and cloud businesses continue to generate the majority of its revenue and profits," according to market analysis, highlighting that despite concerns about OpenAI exposure, the company's foundational segments remain solid. These divisions have historically kept the stock supported during volatile stretches, which lines up with how MSFT recovered after previous drawdowns.
⬤ This matters because Microsoft is one of the heaviest weights in global stock indexes. When a stock this influential experiences a rare decline of this size, it can shift sentiment across the entire tech sector and affect how investors approach risk. Whether MSFT finds support here or drops further could signal how much confidence remains in large-cap tech leadership going forward.
Artem Voloskovets
