Microsoft Hits Decade-Low RSI as Shares Fall 26% Year-to-Date
Microsoft’s relative strength index dipped below 30 for the first time since 2016, signalling its most oversold position in a decade as year-to-date shares plunged 26%. Shares slid over 2% on March 27 following a 790-point Dow drop that pushed the Nasdaq into correction and stoked AI narrative concerns.
1. Technical Oversold Signal
Microsoft’s RSI dipped below 30 on March 27, marking its most oversold reading since 2016. The technical indicator’s slide reflects sustained selling pressure after shares fell over 26% year-to-date.
2. Market Selloff Impact
The stock dropped more than 2% on March 27 as the Dow declined 790 points and the Nasdaq entered correction territory. Rising volatility triggered a risk-off environment that weighed on major tech names.
3. Loss of AI Narrative
Investors have cited waning confidence in Microsoft’s AI positioning after competitors delivered stronger momentum. Concerns over slower AI adoption and valuation pressures have amplified the share decline.