This time it’s Big Tech, but Washington has a long history of rattling the market

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Attention from the feds often doesn't go over well with Wall Street

The feds have turned their prying eyes on Big Tech, and, as we’ve seen throughout history, investors are paying a price for the uncertainty.

Microsoft, which once faced a massive antitrust investigation, rounds out the top five of the most valuable U.S. tech companies. At this point, however, the software giant has avoided the recent crackdown. McClellan, of course, isn’t suggesting that federal intervention isn’t at times necessary, or that allowing Wall Street to run wild is something to strive for — after all, look at what happened during the subprime mortgage crisis.

Breaking up Standard Oil marked the beginning of a deep slide for the Dow, which dropped from a high of 102.9 in January 1906 to a low of 53.08 in November 1907. It’d take a decade before the Dow would return to its pre-breakup highs. Fast forward to the Kennedy years, and the president’s threats to the steel executives, who were facing a strike, clearly weren’t welcomed by investors.

“The DJIA remained flat in one of the tightest trading ranges in history, until the mid-term elections in November 1994 resulted in a change in the majority party in congress and an end to the prospects of nationalized health care,” he said. “The market reacted positively to the withdrawal of this potential burden.”

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