Microsoft stock flips early weekly loss into 1.1% gain amid U.S.-China trade optimism

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Sholanke Dele

23.04.2025

Microsoft stock flips early weekly loss into 1.1% gain amid U.S.-China trade optimism — Microsoft rebounds, tests key resistance at $377

Microsoft (NASDAQ: MSFT) stock opened Tuesday at $363.37 and fell to an intraday low of $359.95 during early North American trading hours.

This level attracted buyers, sparking a 2.2% intraday rebound that peaked at $367.70. The recovery stalled just below the $367.30 resistance, a former support level highlighting the market’s hesitance around this key pivot zone.

The significance of Tuesday’s price action goes beyond technical support on the chart. It coincided with renewed investor optimism surrounding the U.S.-China trade front. After hours, the broader “Magnificent Seven” megacap group, including Microsoft, extended gains as traders reacted to President Trump’s remarks suggesting a potential reduction, though not elimination of tariffs on Chinese imports. Such optimism tends to benefit tech giants like Microsoft that are deeply integrated into global supply chains.

Microsoft price dynamics (Sept 2024 - April 2025). Source: TradingView

Adding to the risk-on sentiment, Trump stated he had no intention of removing Fed Chair Jerome Powell. His reassurance helped ease concerns of institutional instability that had weighed on market confidence earlier in the month.

MSFT premarket open reclaims $376 as bullish momentum builds above key MAs

On the technical front, Microsoft’s premarket level on Wednesday has jumped to $376, a breakout move above both the 50- and 100-hour moving averages and yesterday’s cap at $367.30. This aligns the price action more firmly with short-term bullish momentum, positioning the stock to erase earlier April losses.

However, the near-term ceiling at $377, reinforced by the 20-day moving average, stands in the way of further upside. This makes today’s session pivotal, clearing 377 could open room toward the March highs, while rejection might bring a pullback to test the breakout zone around $367.

So far this week, Microsoft has swung from a -1.9% decline to a 1.1% gain. That shift reflects a broader narrative that buyers are stepping in on dips as macro headlines temper downside risks. Whether Microsoft stock continues to rise depends on how it reacts to the 20-day moving average around $377. If buying momentum stays strong during regular trading hours, we could see new highs above this level.

Microsoft fell nearly 10% from last week’s $395 high, recording five straight losing days. The continued decline reflected both technical exhaustion and broader market risk-off sentiment.

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