Big Tech Stocks Surge as Trump Names Ferguson to Lead FTC

Tech stocks soared on Wednesday, driven by Alphabet’s record-breaking performance after President-elect Donald Trump announced a new leadership direction for the Federal Trade Commission (FTC). Trump’s pick, Andrew Ferguson, is set to take over as chair, replacing Lina Khan, whose tenure has been marked by aggressive antitrust actions, according to Reuters.

Alphabet, the parent company of Google, saw its stock price jump 5.5% to close at $195.45, an all-time high. The rally came amid speculation that Ferguson’s leadership might ease the regulatory scrutiny that intensified under Khan. Jay Woods, chief global strategist at Freedom Capital Markets, noted that Ferguson was a “known dissenter” during Khan’s time at the FTC. “Many people feel under his leadership the antitrust case against Alphabet will come to an end,” Woods said, per Reuters.

The FTC, under Khan, had become a focal point in the debate over antitrust enforcement and corporate power. High-profile cases against major tech firms like Alphabet, Microsoft, and Apple defined her tenure, which ended as her term as chair expired. Trump’s decision to replace her with Ferguson, a former FTC commissioner, signals a potential shift in the agency’s approach to Big Tech.

Read more: Trump Taps Mark Meador for Federal Trade Commission Post

While Trump and his administration have often criticized technology giants, their regulatory stance remains uncertain, especially given the presence of some prominent tech executives among Trump’s backers.

The broader tech sector also rallied alongside Alphabet. Tesla saw a 4.6% surge, hitting a record high, as investors speculated that the electric vehicle company might benefit from CEO Elon Musk’s ties to Trump. Meanwhile, Microsoft’s stock climbed 1.2%, and Amazon and Meta Platforms each gained about 2%.

Adding to the optimism for tech stocks, a recent inflation report bolstered hopes of a potential interest rate cut by the Federal Reserve later this month. Lower interest rates are generally favorable for technology companies, which rely heavily on investment and growth potential.

Source: Reuters