Why Microsoft Stock Is Sinking Today | The Motley Fool

Why Microsoft Stock Is Sinking Today | The Motley Fool

By Keith Noonan
Publication Date: 2026-06-02 19:32:00

Microsoft (MSFT 4.13%) stock is moving lower in Tuesday’s trading and taking part in a broader pullback for category-leading artificial intelligence software stocks. The company’s share price was down 4.1% as of 3:30 p.m. ET.

Microsoft’s share price is retreating in response to a new executive order signed by President Donald Trump that encourages companies to take part in a new AI software review program. While participation in the program is voluntary, investors are having a negative reaction to the order.

Image source: Getty Images.

Trump’s latest AI order is dragging Microsoft lower

News hit today that President Trump had signed an executive order that will establish a program led by the federal government to review AI models. The review system is seemingly designed to evaluate potential security implications and overall capabilities and potentially assign some trusted partners with early access to advanced AI systems. As a creator of high-performance AI software, Microsoft…