Microsoft Stock Drops 3.56% as Tech Sector Slumps — Is This a Temporary Dip or Trend Shift?

Microsoft Corp (NASDAQ: MSFT) faced downward pressure on April 4, 2025, as shares closed at $359.84, marking a 3.56% drop from the previous close of $373.11. The tech giant lost $13.27 in value during regular trading hours, with slight movement in after-hours trading, slipping further to $359.75.
The stock opened the day at $364.12 and reached an early peak at $374.59 before the broader market selloff pulled it toward an intraday low of $359.48, barely holding above its 52-week low. This places Microsoft in a precarious technical position, especially given its recent bullish momentum.
With a market cap of ₹2.68 lakh crore (Cr) and a P/E ratio of 28.99, Microsoft remains one of the most valuable companies globally. The stock’s dividend yield of 0.92% also continues to attract long-term institutional investors. Yet, today’s dip reflects growing investor caution amid rising macroeconomic uncertainty and tightening financial conditions in the tech sector.
Microsoft’s recent performance also shows a sharp contrast to its 52-week high of $468.35, signaling a notable correction from its peak valuation. Analysts are closely watching upcoming earnings, AI-related developments, and cloud computing growth trends to determine whether this downturn is a temporary pullback or part of a broader market rotation.
As tech giants like Microsoft, AMD, and Tesla all faced notable declines on the same day, questions are swirling about whether this signals the start of a sector-wide correction — or an overdue valuation reset across Big Tech.