As it relates to heavily weighted large-cap technology, the election will likely delay the construction of data centers.
This means an entire portion of large cap (the “component” companies like Broadcom ($AVGO), Nvidia ($NVDA), Micron ($MU), Advanced Micro Devices ($AMD), Intel ($INTC), Sandisk ($SNDK), etc.) all face an increasingly uncertain sales and profit outlook. (Peripheral AI/data center “plays” like $GEV, $CAT et al will likely suffer, too). The neoclouds (like Coreweave $CRWV) have even more serious problems ahead.
These memory and chip stocks represent a meaningful portion of the QQQs.
This is an abrupt development and with so many long the newly vulnerable areas a more prounounced period of underperformance may occur over the next few weeks.
Ergo, the Nasdaq may lose its leadership role that it has had for a decade.
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