Microsoft's Shares Slumping Currently

This morning, the Bureau of Labor Statistics (BLS) published its August jobs report, revealing weaker results than anticipated. The report showed that only 22,000 non-farm jobs were added, and the BLS revised its estimate for June, swinging from a previous estimate of 14,000 jobs added to 13,000 jobs lost in the month.

Meanwhile, tech giant Microsoft continues to feel the impact of geopolitical developments. The company, which uses chips from Nvidia and other chip leaders for its data center and AI infrastructure, relies heavily on Taiwan Semiconductor Manufacturing (TSMC) for key manufacturing. Most of this manufacturing takes place in TSMC's Taiwan-based facilities.

However, a recent announcement by the Trump administration has potentially complicated matters. The administration announced new tariffs on semiconductors manufactured outside the country, imposing a uniform duty rate of up to 15% under Section 232 trade protection measures, effective from September 1, 2025. Previous statements suggested that chips produced by TSMC would be exempt from these new import taxes, but this appears to have been reversed.

This news has contributed to Microsoft's stock decline. As of 3 p.m. ET, Microsoft's share price was down 2.8%. The day's range for Microsoft's stock is $492.39 to $511.97. The sell-off for Microsoft's stock today is in response to this news, as well as mounting signs of weakness for the U.S. economy, which are prompting sell-offs for Microsoft and other stocks.

At the same point in the day's trading, the S&P 500 was down 0.5% and the Nasdaq Composite was down 0.2%. The weakened hiring data supports the thesis that the Federal Reserve will cut interest rates this month. As for Microsoft, the company's gross margin stands at 68.82%, and the 52-week range for its stock is $344.79 to $555.45.

The new tariffs could potentially lead to higher costs for Microsoft and other AI infrastructure leaders. The weaker-than-expected jobs report and the announcement of new tariffs have cast a shadow over the tech sector, and investors will be closely watching developments in the coming weeks.

Microsoft's Shares Slumping Currently