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The hot technology sector looks likely to stay strong no matter if either U.S. President Joe Biden or former president Donald Trump emerge victorious in their White House bids, according to a sentiment survey from 22V Research.
The investment strategy research firm in a Sunday note outlined results of an investor sentiment survey it conducted last week, before Saturday’s assassination attempt against Trump at his rally in Butler, Pennsylvania. The shooting left one attendee and the gunman dead and two other people injured. This week, the Republican Party at its national convention in Milwaukee will formally nominate Trump as its candidate for U.S. president.
National polls generally suggest a tight race between Biden and Trump heading into the November 5 election. 22V Research said its sentiment survey showed investors see the Tech sector (XLK) performing well regardless of who wins. A few in-depth polls published in the past week provided a baseline for respondents’ sentiments, 22V Research said.
Investors at a ~60% rate see the tech sector performing well under a second Biden administration if it has little impact on the economy. They are also optimistic about the industrial (XLI), consumer discretionary (XLY) and financial (XLF) groups if the administration “helps the economy,” the survey showed.
The survey also found investors were optimistic about the industrial (XLI) sector if a Trump administration aids the economy and financials can work regardless of the administration’s impact on the economy. Here is one chart from 22V Research:
The S&P 500 Information Technology sector (XLK) has jumped +21% YTD, the best-performing group in the S&P 500 (SP500)(SPY) largely as AI prospects drive up shares of mega-cap companies such as Nvidia (NVDA) and Meta (META).
Here’s another 22V Research chart:
