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Why Microsoft Stock Was Climbing Today
Shares of Microsoft (NASDAQ: MSFT) were trading higher Tuesday in the wake of a cooler-than-expected November inflation report from the Bureau of Labor Statistics that lifted the market broadly, but which especially helped the tech sector. The specter of the Federal Reserve has been hovering over the stock market all year as its rapid boosts to the federal funds rate have inspired investors to bail out of growth stocks and tech stocks and move their money to safer stock market sectors as well as bonds. Tuesday’s news that the Consumer Price Index’s year-over-year growth rate slowed to 7.1% in November — its slowest year-over-year growth since last December — sent cheers through the market, as it not only means that inflationary headwinds are easing, it also makes it less likely that the Federal Reserve will continue to aggressively raise interest rates.
