It’s impossible to model the stock market with absolute certainty. But is it a coincidence that since the FCC announced a week ago it would seek some measure of deregulation for telecom companies, the technology heavy Nasdaq has risen over 4 percent? Before the Supreme Court Brand X decision and the related FCC statements, the Nasdaq had been down year-to-date about 6 percent. Now we’re close to even for the year.
Our Gilder Technology Index, which is even more concentrated in technology, is up almost 6 percent in the last week.
Several of my Discovery colleagues have voiced valid concerns that the Brand X case confirms and centralizes the FCC’s powers — often an ominous thing, to be sure — but if the FCC follows through on its recent directional statements, it will be good for the economy and stocks. So far the market seems to think so.