While the tech sector as a whole has lagged the market since Election Day, the PureFunds ISE Cyber Security ETF HACK 0.57% has gained 3.7 percent, outpacing the S&P 500’s 3.3 percent rise.
There has been a number of news events in the cybersecurity space in recent weeks, but the election is front and center.
The Political Environment And Cybersecurity
President-elect Donald Trump hasn’t provided many specifics on potential cybersecurity policies. In fact, Trump was mocked by detractors following his statements on the subject in the first presidential debate. “The security aspect of cyber is very, very tough,” Trump said as part of a debate answer. “And maybe it’s hardly doable.”
Regardless of Trump’s stance on the issue, the controversial election certainly raised awareness of the importance of cybersecurity. The Wikileaks leak of hacked Hillary Clinton emails may have ultimately cost her the election. U.S. intelligence officials say Russian hackers were likely behind the leaks.
While Trump suggested that the hacker could be “somebody sitting on their bed that weighs 400 pounds,” the Obama administration officially accused the Russian government of stealing Democratic National Committee documents.
Since the election, Russian hackers seem to be emboldened. Within 24 hours of Trump’s victory, Russian hackers reportedly targeted U.S. universities, think tanks and the U.S. State Department.
The prospect of a cyber war with Russia is terrifying for most Americans, but it seems to be giving U.S. cybersecurity stocks a nice boost.
In Light Of Russia Fears, Cybersecurity Stocks Rise
In addition to positive election-related news, FireEye Inc FEYE 1.45% shares soared following a Q3 earnings beat driven by aggressive cost-cutting measures.
Palo Alto Networks Inc PANW 2.28%’s earnings, on the other hand, fell…
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