The announcement of Conduent's innovation initiative with Microsoft, specifically leveraging Azure OpenAI Service, has positively impacted investor sentiment, leading to an increase in Conduent's stock price. Partnerships with major tech companies like Microsoft tend to be viewed favorably by the market, especially when they involve cutting-edge technology like OpenAI.

While the primary focus of the news is on Conduent, Microsoft's involvement in this partnership, especially through its Azure OpenAI Service, could positively affect its stock as it showcases Microsoft's continued expansion and influence in AI and cloud services. Such initiatives can enhance Microsoft's reputation as a leader in technology innovation.