Microsoft Breaks Above 200-Day Average on 2% Surge, Boosting Software Stocks

Microsoft shares rose about 2% on June 1, 2026, closing above their 200-day moving average for the first time since January 7 after 98 consecutive trading days below it. This technical breakout signals a potential durable recovery in the software sector following an AI-driven selloff. The move comes ahead of the Microsoft Build conference, where updates on AI initiatives are anticipated. Broader sector gains included a 14% rally in the iShares Expanded Tech-Software ETF over three sessions, with Salesforce and ServiceNow each jumping around 10%. Evercore ISI views the development as evidence that investor concerns over Azure growth and Copilot adoption are easing, potentially attracting further momentum flows.