Tech stocks are expected to fall following tomorrow’s US Presidential election – no matter who emerges victorious.
Incumbent Donald Trump faces Democrat challenger Joe Biden for the country’s leadership. Yet despite the vast majority of Big Tech favoring Biden, investors are betting against the sector’s rallying after the vote.
According to sources interviewed by Reuters, hedge-fund managers worry that tighter White House regulation of tech, and a focus on other industries in a second pandemic stimulus package, could cause Silicon Valley stocks to tumble.
Tech experts see downsides in each candidate. Biden, who is currently favorite to win, would likely slap higher tax rates, tax-motivated selling and greater regulation.
Trump has steered clear of conversations about corporate taxes. But the Republican has issued regular broadsides against an industry he views as biased against rightwing voices. And the Republican has suggested firms like Facebook and Google could be broken up as part of monopoly cases.
As COVID-19 drags much of the world into a second winter lockdown, industry leaders also fear that Biden’s reported $2 trillion stimulus deal would largely ignore tech in favor of other, more at-risk sectors like construction and engineering machinery.
Most insiders are bracing for tough times whatever happens tomorrow evening. “Our general view is that it might not matter all that much,” said Brian Jacobsen, senior investment strategist at Wells Fargo, a bank.