Microsoft (MSFT) shares fell on October 8 after the Trump administration suspended the company's access to an employment-based green-card process, citing concerns over the alleged misuse of employment visa programs. The move formed part of a broader immigration crackdown that also placed restrictions on other major technology and outsourcing firms and opened investigations into nine of the country's leading universities.

Microsoft stock traded near $531 before sliding to $525.06, and the stock recovered to $525.64 on the intraday chart as broader technology shares came under selling pressure.

New Hiring Restrictions for Microsoft and Other Firms

Vice President JD Vance urged Microsoft to hire more American workers. Labor Secretary Keith Sonderling said officials would stop accepting new permanent labor certification applications from the affected businesses, effectively pausing their ability to sponsor new employment-based permanent residency applications.

The suspension extends beyond Microsoft to cover Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. Authorities have not announced findings of wrongdoing against any of the companies.

Green-Card Freeze Reaches Universities

The PERM process requires employers to show that hiring foreign workers will not disadvantage qualified American applicants. Existing H-1B visa holders are not directly barred from continuing to work.

The crackdown arrives as AI-related hiring continues across American software and data-center businesses. A recent report cited more than 750,000 AI-linked jobs created since 2023.

Officials also launched investigations into nine universities, including Harvard, Yale, Stanford, Brown and MIT. Investigators are examining whether J-1 exchange visas were used to reduce wages.

The administration previously introduced a $100,000 fee for certain new H-1B petitions. Its latest action targets the separate process that supports permanent residency applications. The immediate developments to watch include any findings from the university investigations and any change to the freeze on permanent labor certification filings.

OpenAI Report Adds Pressure to Technology Shares

A Financial Times report said OpenAI's annualized revenue stood about $20 billion below an earlier reported figure. In a separate development, AI data-center revenue growth remained strong at Applied Digital.

The report surfaced during a wider selloff in AI-linked shares. Microsoft maintains close commercial ties with OpenAI, making the reported revenue gap relevant to its shareholders. Neither news item confirms why Microsoft shares declined, and investors also weighed changing expectations for AI spending, cloud demand and company earnings during Thursday's trading session.

$CRWV $MSFT $ORCL $SOXL pic.twitter.com/r35MoIbXqx — tradfi news (@tradfi) October 8, 2026

Technical Picture and Market Context

The intraday chart showed selling below the $530 and $528 levels, with trading volume increasing during the decline. The $525 area subsequently became the nearest watched support level.

A separate retail investor allocation report showed US stock exposure reaching 71.8% in September. That broader positioning offers context for overall market conditions but does not, on its own, explain Microsoft's price movement.