The US elections came nerve-rackingly close at the end with no one being sure over who would win the Biden vs Trump race. It seems that investors were sure though as the stocks of major US-based tech companies like Microsoft, Apple, Google, and Facebook rose sharply right after polls closed on November 3rd.
The NASDAQ Composite Index even showed a record high reaching 12,000 points today which has never been seen before in US history. Some experts believe that the big tech companies would have been more secure under the Trump administration as compared to Biden but investors seem to think otherwise. The stocks of big tech companies are expected to fall provided they are forced to break up into smaller companies to maintain competition standards.
With COVID-19 rampant in the US, technology companies have been doing relatively better in terms of profits however their stocks dipped shortly before the US elections.
With a very close election, the prospect of a divided government has investors wondering whether the tax cuts signed by President Donald Trump will remain in place.
Susan Schmidt, head of US equity for Aviva Investors said, “We were worried about a higher tax rate not just for business, but capital gains — tech was an area where we had a lot of capital gains.”
Image Source: Telegraph