Microsoft stock dips in premarket trading following layoff reports
Stock slips on Microsoft layoffs
Microsoft Corp shares are facing early selling pressure on Wednesday, May 14, following reports of a major workforce reduction. The stock is currently down 0.8% in premarket trading at $445.7 after news emerged that Microsoft is laying off 6,000 employees—roughly 3% of its global workforce.
This move, part of the company’s ongoing internal restructuring, has disrupted the bullish momentum that had carried the stock to fresh 2025 highs earlier this week.
The bullish structure continued to develop on Monday when Microsoft printed a hammer candlestick off the $439.6 support zone—an early sign of renewed buyer strength. This pattern often marks a short-term reversal at a key price floor. That technical setup was reinforced on Tuesday, as Microsoft opened near $448.0, briefly dipped to $445.6, and then rallied 1.15% to a new 2025 high at $450.7. The rally not only cleared Monday’s high of $449.4 but also confirmed the continuation of the earlier reversal signal.
Microsoft stock price dynamics (Dec 2024 - May 2025)
Part of the strength came from broader market sentiment. Tuesday’s U.S. inflation data showed a slower-than-expected increase in consumer prices, bringing annual inflation to its lowest since early 2021. While some stocks traded lower, Microsoft extended gains likely benefiting from both its strong Q3 results and the broader view that easing inflation may limit further rate hikes.
Microsoft stock outlook supported by easing inflation and trade sentiment
However, the current premarket dip has cast a shadow on the rally. The overlap between negative headlines about layoffs and overbought RSI conditions has raised the potential for a short-term retracement. If the decline continues, the next key level to watch is $443.5. A deeper pullback could retest $439.6—the same level that triggered Monday’s bullish reversal.
Still, any downward pressure may be limited. Supportive macro factors, including signs of easing tensions in U.S.-China trade relations and Microsoft’s robust Q3 performance, may cap the downside. The selloff appears to be more of a temporary reaction to restructuring news than a reversal of the broader uptrend. A sustained recovery above $450.7 would reinforce that bullish narrative.
Microsoft broke above last week’s consolidation and retested old resistance as support. Price surged toward $449.40 as bulls aimed for the $456 nine-month high.
