Varney: Big tech driving coronavirus comeback
Top five big tech giants are all-American and worth $6T
FOX Business’ Stuart Varney, in his latest “My Take,” argues that in a slew of bad news, the economy continues to recover from the coronavirus pandemic for a few reasons – one being the profit and power of American big tech.
Recent news shows riots in D.C. and record coronavirus hospitalizations in Texas, Varney said, yet stocks continue to rally.
“Why has the market gone straight up, as the economy went through a severe setback and free speech went down the drain?” he asked. “Here's the standard answer: the Fed is pumping in trillions of dollars. The economy is recovering. We're coming out of the virus shutdown. All true. But I would add one more reason: American big tech.”
VARNEY: FREE SPEECH IS 'FADING AWAY'
Varney said big tech giants “completely dominate” Wall Street since technology is what economies are now based on.
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Between the top five giants – Apple, Microsoft, Amazon, Google and Facebook – they “set the standard” for the cloud, social networking, software and more, Varney said – all things that “run our lives now and in the future.”
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“They've all emerged unscathed, and stronger, after the virus,” he said. “They all have vast amounts of cash, about a half-trillion dollars. And they are poised to dominate the new, post-virus economy. They're all-American. That’s where the money has been going and that’s a big reason why the market has been going up.”
Together, the top five tech companies are worth $6 trillion. Varney said some “powerful voices” aim to break them up or tax them more heavily, yet they’re the driving force of American business.
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“Their rise is a big reason for the market rally, despite all those dreadful news headlines,” he said.