With the U.S. presidential election drawing near, financial markets remain tense, as experts suggest that the outcome may substantially impact certain sectors, particularly Big Tech.
Wedbush analysts have expressed concerns about a potential Trump win, particularly its implications for global tech investments. They believe it could heighten tensions in the U.S.-China tech dispute, potentially leading to increased tariffs and new disruptions.
“A shift in tariffs and a more aggressive stance on China could disrupt the supply chain, impacting companies like Nvidia (NASDAQ) and possibly leading to Chinese retaliatory measures against firms such as Apple and Tesla,” noted Dan Ives and his team. Such developments, they say, might slow progress in the AI industry.
The role of Lina Khan as the Chair of the Federal Trade Commission (FTC) is also significant for the tech sector. If Trump wins, Khan may continue her tenure, while a Harris administration could potentially replace her, which could shift regulatory priorities for Big Tech.
“From a tech investment perspective, we see a Harris win as slightly more favorable, while a Trump victory could create headwinds for Big Tech,” the analysts added.
However, they also noted that if the election results lead to a divided Congress, legislative changes affecting Big Tech could face delays, limiting immediate impacts.
Last week’s strong earnings from major tech companies like Microsoft (NASDAQ), Alphabet (NASDAQ), and Amazon (NASDAQ) have bolstered Wedbush’s positive outlook on the sector. These companies showcased that the momentum behind cloud computing and the AI industry is set to build in the years ahead.
While initial reactions to some reports, such as Microsoft’s, were mixed, Wedbush believes the market will view these developments as positive indicators for the tech sector’s growth leading into 2025.
