Wall Street Week Ahead: Big tech stocks may face post-election headwinds, no matter who wins

Some investors are betting the technology and communications stocks that drove a massive rebound in U.S. markets this year will face a tougher slog in coming months, no matter whether Republican President Donald Trump or Democratic challenger Joe Biden wins Tuesday's election.

"There will be a shift and it is starting, but it will take time," said Max Gokhman, head of asset allocation at Pacific Life Fund Advisors, which cut its exposure to large-cap tech in September to neutral from overweight. Hedge fund manager David Einhorn of Greenlight Capital, a longtime tech bear, told clients in a letter this week that tech stocks were in the middle of an “enormous bubble” that popped when the S&P 500 hit its record high on Sept. 2, 2020.

The Justice Department’s lawsuit against Google in late October marked the first time the U.S. government has cracked down on a major tech company since it sued Microsoft Corp MSFT.O for anti-competitive practices in 1998.An expected US$2 trillion stimulus package by Biden, who leads Trump in national polls by 10 percentage points, could enhance the appeal of out-of-favor stocks like construction equipment and materials companies, investors said.

Potentially higher taxes under a Biden administration are another worry. Biden has proposed increasing the corporate tax rate to 28per cent from 21per cent, potentially weighing on companies' earnings.

España Últimas Noticias, España Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

Wall Street drops at open as tech stocks slide, COVID cases jumpREUTERS: Wall Street's main indexes fell at the open on Friday triggered by a selloff in tech heavyweights following their underwhelming business ...
Fuente: ChannelNewsAsia - 🏆 6. / 66 Leer más »

US: Wall Street rebounds as market eyes tech results, strong economic data[NEW YORK] US stocks closed higher on Thursday, with the technology heavyweights rallying ahead of major earnings reports and upbeat domestic economic data calming investor jitters about surging coronavirus cases. Read more at The Business Times.
Fuente: BusinessTimes - 🏆 15. / 51 Leer más »

Asia: Stocks fall again after lockdowns spark Wall Street, Europe rout[HONG KONG] Asian markets sank on Thursday after a meltdown in New York and Europe sparked by France reimposing a nationwide lockdown to battle a new wave of virus infections, with fears other major economies could follow suit. Read more at The Business Times.
Fuente: BusinessTimes - 🏆 15. / 51 Leer más »

Wall Street futures higher after steep selloff with eyes on Big Tech earningsU.S. stock index futures rose on Thursday following the S&P 500's worst day in nearly five months as focus shifted to Big Tech earnings, but ...
Fuente: ChannelNewsAsia - 🏆 6. / 66 Leer más »