Microsoft and Amazon stocks fall on rare downgrade questioning AI optimism

Core Viewpoint - Shares of Microsoft and Amazon are facing renewed pressure due to a rare analyst downgrade and increased regulatory scrutiny from the European Union [1] Group 1: Company-Specific Developments - Microsoft and Amazon are two of Wall Street's most influential companies, and their stock performance is being impacted by external factors [1] - The analyst downgrade represents a significant shift in sentiment towards these tech giants, which could influence investor confidence [1] Group 2: Regulatory Environment - The European Union's fresh regulatory scrutiny is contributing to the pressure on Microsoft and Amazon, highlighting ongoing concerns about compliance and market practices [1]