Microsoft Rises Amid Tech Slowdown as Investors Rotate to Value Stocks
Microsoft shares gained 1.63% on Monday, bucking a broader slowdown in the tech rally that has dominated 2025's market performance. The shift reflects growing investor preference for value-oriented equities over high-flying AI stocks, with the Russell 2000 surging 9% as small-caps and cyclicals take center stage.
The 'Magnificent Seven' tech giants—including Microsoft, Nvidia, and Apple—are facing valuation concerns after driving this year's AI-fueled rally. Market participants now eye fiscal policy and anticipated Fed rate cuts as catalysts for value stocks, signaling a potential inflection point in sector leadership.