New York, Feb 26, 2026, 16:42 EST — After-hours
Microsoft (MSFT) ended Thursday at $401.72, up roughly 0.3%. The stock traded in a range from $398.79 to $407.47 during the session, as a reported antitrust raid in Japan and uncertainty around AI stocks pulled investor focus.
The clock is ticking. Investors are increasingly uneasy over Big Tech’s ability to justify massive data center and AI spending, with Microsoft taking the hardest hit. Shares have slid almost 20% this year, making it the top weight pulling down the S&P 500, S&P Dow Jones Indices says.
The market’s nerves were clear on Thursday. Nvidia’s earnings didn’t give the AI trade another jolt, and stocks slipped—Nasdaq dropped 1.18%, while the S&P 500 shed 0.53%, according to early numbers. “It feels like an Nvidia hangover that’s specific to the AI space,” said Michael Green, chief strategist at Simplify Asset Management. Reuters
Japan’s Fair Trade Commission carried out a raid on Microsoft Japan’s offices in Tokyo on Wednesday, probing potential anticompetitive restrictions involving Azure clients and competing cloud providers, according to someone familiar with the matter. A Microsoft Japan spokesperson said the company is “fully cooperating” with investigators. The commission offered no comment. Reuters
There’s a bigger question circling the market—just how long can the AI trade keep running at these levels? “People are getting concerned about lofty valuations,” said Thomas Plumb, chief executive and portfolio manager at Plumb Funds. James St. Aubin, Ocean Park Asset Management’s chief investment officer, put it bluntly: “It’s an increasingly cloudy future for AI.” Reuters
Washington is zeroing in on the cost questions surrounding AI infrastructure. The White House plans to bring in Microsoft, Amazon, and other industry players on March 4 to lock in a “Rate Payer Protection Pledge”—a promise meant to protect consumers from higher power bills driven by data center demand. “We appreciate the Administration’s work to ensure that data centers don’t contribute to higher electricity prices for consumers,” Microsoft vice chair and president Brad Smith said. Over at Harvard, Ari Peskoe dismissed the effort as “meaningless until we see utilities file contracts.” Reuters
Power has joined the list of things investors are watching. U.S. grid constraints could clash with the aggressive data-center expansion plans of hyperscalers, according to a Reuters Breakingviews piece. That’s raising questions about how the AI boom will play out for the biggest cloud players.
The target hasn’t changed—money keeps flooding in, but the rules keep moving. According to Reuters, Amazon is considering putting cash into Microsoft-backed OpenAI, but it’s not a done deal. The investment appears to depend on OpenAI reaching that elusive “AGI” milestone, meaning artificial intelligence matching human capability, or possibly heading for an IPO. Reuters
The Japan investigation throws a spotlight on how quickly regulatory issues can flare up. Should regulators force Microsoft to alter its cloud contract terms or tweak business practices, Azure’s grip on customers might slip—right as investors are scrutinizing margins, capital spending, and growth forecasts.
All eyes now turn to Friday’s U.S. producer price index, set for release at 8:30 a.m. EST, offering a snapshot of wholesale inflation. After that, traders focus on the March 4 White House meeting, which could shed light on just how much of the AI electricity tab corporate America will have to shoulder.
