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Silicon Valley's gamble on Trump isn't paying off

a year ago
  • #Tech Stocks
  • #Silicon Valley
  • #Trump
  • Tech stocks have declined significantly since Trump took office, contrary to Silicon Valley's initial support.
  • Silicon Valley's backing of Trump was driven by hopes for free market policies and economic benefits, but tariffs and other policies have led to second thoughts.
  • The SV50 index, tracking 50 major Silicon Valley firms, shows a 27% drop since their peak in February 2025.
  • Three key forces shape Silicon Valley's mindset: long-term investment horizons, contrarianism, and herding behavior.
  • Despite initial optimism, Trump's policies, including tariffs, have negatively impacted Silicon Valley's financial performance.