Tech stocks have lagged behind the broader market gains since Trump’s win, as investors chalked the tech sector into the election’s “loser” column. Trump successfully voiced the fears of Americans who aren’t confident about their economic prospects during the tech-powered revolution of the past two decades. Silicon Valley now faces the unsettling prospect of less friendly policies, as Trump intends to launch a counter-insurgency against globalization and restore job growth for US workers through infrastructure spending, immigration restrictions and protectionist trade policies.
For more on how the Trump Administration may impact the Silicon Valley economy, read our expanded commentary below.
The government has taken a laissez-faire attitude toward the tech industry for many years, providing limited oversight and friendly policies, such as an Internet tax ban, support for network neutrality and the “open internet.” With Trump, the tide may be turning. While local businesses will welcome lower corporate taxes and reduced regulations under Trump, Silicon Valley remains uneasy about the next four years. Tech manufacturers have a lot to lose under a protectionist trade policy and immigration restrictions. Major area employers are concerned about brain drain if hiring of highly skilled immigrants is curtailed while businesses are incentivized to use and train American labor.