How a Biden win and strong showing by Democrats in the election could hit tech stocks

Democratic U.S. presidential nominee and former Vice President Joe Biden holds a copy of his schedule and notes as he delivers remarks about U.S. President Donald Trump as well as Biden's proposals to protect U.S. jobs during a campaign event in Warren, Michigan, U.S., September 9, 2020.
Leah Millis | Reuters

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The polling strength of former Vice President Joe Biden has raised the odds of a Democratic sweep in November, and that could be bad news for tech stocks, according to a new note from Raymond James.

The bank broke down the outlook for tech and media stocks in different scenarios for the political situation, putting the odds of a President Biden with Democrats holding both houses of Congress at 50%. This combination could be worse for the tech sector than recent periods of Democrats in power, the note said. 

"Historically, technology broadly has done much better under Democratic administrations, while telecom/media has done better under Republican administrations, but the nuances around this election and policy priorities of each party create a more complex story than one would perceive simply looking at past performance," the note said.