Microsoft’s Overbought Status Contrasts With Broader Market Decline

Microsoft Corp. finds itself in technically overbought territory with a 14-day RSI of 78.4, defying last week's market rout that saw major indices shed 2-3%. The divergence comes as the tech giant reported record cloud revenue figures while the broader market reeled from disappointing jobs data and trade policy uncertainties.

The company's decision to break out Azure revenue for the first time—revealing $75 billion in annual cloud sales—sparked a 2% weekly gain even as the Nasdaq Composite fell 2.2%. This performance briefly pushed Microsoft's market capitalization above $4 trillion before settling lower.

Analyst upgrades from Goldman Sachs and Bank of America failed to ease concerns about stretched valuations. The stock now leads Wall Street's overbought rankings, with traders noting the unusual strength appears increasingly detached from macroeconomic realities.