Microsoft's stock slumped by 3 percent on Thursday, December 5, after Ford's CEO Alan Mulally announced that there was "no change in my plan" to stay with the automaker till end 2014.

Investors who had been hoping that Mulally would take over the reins as the new Microsoft CEO and steer the company to greater heights, were dejected, and Microsoft's stock slumped to a low of $37.27 before closing at $38.00 on the NASDAQ on Thursday. Ford shares closed up at $16.74 on the NYSE.

Mulally is set to remain Ford's CEO through 2014, per the company's director Edsel Ford II. Ford said Mulally "is staying through the end of 2014 and that's all I know."

Speculation surrounding the next Microsoft CEO since Steve Ballmer announced his retirement earlier in August this year have been rife. Mulally has been considered to be one of the frontrunner for the top job at Microsoft, along with a few internal candidates such as Satya Nadella and Stephen Elop.

Apparently, Ford's directors have not pushed Mulally to make a public statement clarifying his stance, as he has made his decision clear to the company's board.

The fall in Microsoft's stock came after Mulally's comments that he loves serving Ford and has no plans to join Microsoft. The market's reaction is a clear indication that investors had tipped Mulally to replace outgoing CEO Steve Ballmer.

"It's clear that the market is hoping that Mulally is the lead candidate," said Morningstar analyst Norman Young.

"[Mulally is] the turnaround guy, he's the streamlining guy," said Colin Gillis, an analyst at BGC Partners LP in New York. "All these people who are clamoring to get rid of Bing and Xbox and just focus on the core, he would be the guy most likely to do that."

Mulally was previously working for Boeing Co. and joined Ford in 2006. Since then he has played a major role in galvanizing the company's fortunes.