NEW YORK, March 3, 2026, 10:09 (ET) — Regular session
- Microsoft shares slipped in early trading, with investors eyeing higher energy costs and renewed inflation concerns.
- Amazon’s report of damage at data centers in the UAE and Bahrain put a spotlight on how much cloud operators are exposed in the Gulf.
- Friday’s U.S. jobs report looms, with traders positioning it as a crucial gauge for where rate bets might head next.
Microsoft Corp slipped roughly 0.9% to $394.90 in the morning session, with the stock bouncing in a range from $389.70 up to $398.92.
Energy prices are spiking once more as the Middle East conflict intensifies, dragging inflation concerns right back into focus for traders. “The jump in gas prices is bringing back fears of a 2022-style shock,” said George Moran, European macro strategist at RBC Capital Markets. 1
The conflict’s impact on cloud giants is no longer just a blip for the ticker. Amazon reported drone strikes hit some AWS data centers in the United Arab Emirates and Bahrain, warning of a “prolonged” recovery. The announcement sparked new questions about the risks of building out more data infrastructure in the Gulf. Microsoft, aiming for around $15 billion invested in the UAE by end-2029 and set to use Nvidia chips in its regional data centers, didn’t give Reuters a comment right away. 2
The previous session saw the stock stabilize, with traders picking up shares of artificial-intelligence companies. Microsoft added 1.5% Monday, Nvidia jumped 3%. F/m Investments CEO Alex Morris, for his part, argued that unless oil hits $100 a barrel, the conflict probably won’t rattle U.S. equities. 3
Even so, Microsoft stands out as a gauge for investor appetite for growth in a shifting rate environment. Shares took a hit last month—some investors were unnerved after the company pointed to all-time high AI spending and a deceleration in cloud revenue. 4
Microsoft isn’t alone in targeting the area for expansion. Amazon Web Services is putting more than $5.3 billion toward a data-center region in Saudi Arabia, aiming for completion by 2026. Google Cloud, along with Saudi Arabia’s Public Investment Fund, has put forward a $10 billion proposal to launch an AI hub. 5
This could easily shift into a rates narrative instead of staying focused on Microsoft. Elevated energy prices have a way of pulling bond yields higher, which usually hits the megacap tech names first.
Middle East headlines, energy moves, and fresh word from cloud providers—especially on outages or physical hits—are all on traders’ radar. The news flow has been messy and fast since strikes kicked off.
All eyes turn to the February U.S. employment report, set for release Friday, March 6 at 8:30 a.m. ET. That data could jolt rate expectations, a key force behind tech valuations. 6
