Microsoft Slides With Tech Peers as NiSource Inks 20-Year Power Deal
Published on 10/17/2026 at 07:02 | Editorial boerse-global.de
Microsoft shares came under selling pressure on Friday, not because of anything the Redmond giant did, but because the entire technology complex ran into a wall of rising bond yields. The stock ended the session down 2.1% at EUR 470.75, with the pullback driven by a sector-wide retreat rather than company-specific news.
Per AP reports, technology and AI-linked names on Wall Street bore the brunt of the selling as higher global bond yields sharpened investor worries about debt-financed spending on artificial intelligence. Reuters added that doubts are mounting over whether operators of massive data centers can generate enough returns to service their hefty borrowings, with rising financing costs and intensifying competition from China further souring the mood.
The breadth of the damage was striking. According to AP, all but seven technology stocks in the S&P 500 closed in the red, while the Nasdaq shed 2.1%. Even after the drop, Microsoft sits just 4.4% below its 52-week high of EUR 492.40 — a modest gap that underscores how strong the run-up had been before Friday's shakeout.
NiSource Deal Extends a 20-Year Power Backstop
Market turbulence aside, Microsoft is pressing ahead with its data center buildout. Utility NiSource said it signed a 20-year power supply agreement covering Microsoft's data center campus in Indiana, with delivery slated to begin in 2028. As part of the arrangement, NiSource plans to add roughly 1,100 megawatts of generation capacity.
Should investors sell immediately? Or is it worth buying Microsoft?
The utility estimates that existing data center contracts will translate into about $1.75 billion in projected relief for NIPSCO customers. For Microsoft, locking in reliable electricity is a foundational requirement for sustaining the growth of its cloud and AI services.
UK Regulator Floats Strategic Market Status
Regulatory scrutiny, meanwhile, is intensifying. Britain's Competition and Markets Authority proposed on Friday designating Microsoft as having strategic market status in enterprise software — a label that could usher in stricter rules on product bundling and touch applications such as the Copilot AI assistant.
The proposal is now open for consultation, with stakeholders able to submit comments until November 13, 2026, and a final decision expected by February 2027. Microsoft pushed back on the thinking, stressing that its software products are built to be open and interoperable. The company also found itself suspended about a week ago from a US government program for Green Card applications for foreign skilled workers.
Analysts Split on Direction Ahead of Earnings
Clarity on the profitability of Microsoft's multibillion-dollar AI strategy should arrive soon: the company reports first-quarter results for fiscal 2027 after the Wall Street close on October 28.
Views on the print diverge. StoneX analyst Yi Fu Lee raised his price target to $600 from $525 on Friday and reiterated a buy rating, citing operational progress in AI ahead of the quarterly report. UBS confirmed its buy recommendation and lifted its target to $675 from $525, with analyst Karl Keirstead pointing to solid fundamental trends in Azure and Microsoft 365. Citi, as Reuters reported, nudged its target up to $636 from $600 while keeping a "Buy" rating.
On the insider front, CFO Amy Hood sold 7,305 common shares on Tuesday under a pre-arranged trading plan in accordance with Rule 10b5-1.
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