Microsoft Stock Price Rebounds Nearly 15% In The Best Day For Stocks Since 2008

Shares of Microsoft (NASDAQ:MSFT) rebounded strongly yesterday in another difficult week for traders and institutions. S&P 500, the U.S. benchmark index, surged 9.3% higher after President Trump declared a national emergency.

Fundamental analysis: Stock market rebounds, Gates leaves Microsoft’s board

The stock market rallied higher yesterday after days and weeks of serious losses in the most difficult moment for businesses since the global financial crisis.

The U.S. President Donald Trump declared a national emergency over the pandemic in a press conference with the business leaders. He also pledged $50 billion in federal aid to fight the virus outbreak.

Standing behind Trump during his press conference were representatives from Walmart, Walgreens, LHC Group, Signify Health etc. Trump pledged to increase the number of COVID-19 tests available, waive interest on federal student loans as well as to purchase crude oil to stock up the national reserves.

Investors obviously liked Trump’s measures as the central banks and governments around the world race to support their citizens and businesses, and mitigate the impact of the coronavirus outbreak.

After the stock market closed, Microsoft announced that Bill Gates, its co-founder, is leaving the board of the company, as well as his position in the board of Warren Buffett’s Berkshire Hathaway.

Technical analysis: Historic gains

Shares of Microsoft recorded one of the best days in history by rallying 14.22% to erase almost all of its weekly losses. Practically all gains were recorded in the last hours of Friday’s trading session.

As seen in the chart above, the price action rebounded strongly from the major horizontal support near the $140 mark. This level is expected to play a major role again, if the price action rotates lower again next week. On the upside, the zone around the $175 mark is a target for the bulls.

Summary

Shares of Microsoft recorded one of the best days in its history after rallying 14.22% to ultimately erase almost all of its prior weekly losses. The stock market rally was fueled by the national emergency introduced by Donald Trump yesterday, as governments and central banks ramp up their efforts to combat the impact of COVID19.