Microsoft shares fall 2% as Anthropic unveils workplace tools that challenge Office

Microsoft shares fell over 2% on Wednesday, extending losses from the prior session, even as the broader tech sector rallied with the Nasdaq Composite gaining more than 2%. The decline followed Anthropic's launch of new workplace tools, including Claude Sheets, an AI-powered spreadsheet that could challenge Microsoft Excel. Anthropic also introduced Claude Whiteboards and Claude Data, raising questions about AI firms competing directly with traditional software giants. Analysts remain bullish on Microsoft, with Evercore ISI and RBC Capital reiterating Buy ratings and price targets above $600. Microsoft also faces infrastructure challenges, requesting the Trump administration reconsider restrictions on Chinese optical transceiver imports that could delay data center construction.