Microsoft Drops 13% in 2026, Becoming Biggest Drag on S&P 500

5 articles · Updated · Bloomberg · May 21

Microsoft has become the largest single weight holding back the S&P 500 this year, with its 13% slide outweighing the impact of other major decliners.
AI-related worries have driven the stock lower, leaving the software giant as the clearest company-specific brake on an index still up 8.6% in 2026.
Meta Platforms and Tesla have each fallen more than 7%, but their effect on the benchmark is only a fraction of Microsoft’s because of its much larger index weight.
The drag comes as the S&P 500 struggles to extend a rare run of four straight years of double-digit gains amid broader pressure from the war in Iran and rising inflation.

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