**Microsoft Shares Drop Amid Rising Inflation**
Microsoft (NASDAQ: MSFT) saw its stock close 3.3% lower on Tuesday due to a U.S. Department of Labor report indicating that producer price inflation reached a historic high of 9.6% in November, following a 6.8% increase in consumer prices—the fastest rate of growth in 40 years.
The inflation figures directly impacted analysts’ forecasts for Microsoft’s earnings growth, which is estimated at 15% annually over the next five years. If inflation persists at its current rate, real earnings growth may only be 5%. This led to a significant loss in market capitalization for Microsoft, totaling approximately $82.5 billion.
The Federal Reserve’s upcoming meeting is expected to address inflation and interest rates, which could further affect economic growth and, ultimately, Microsoft’s earnings.
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