Like it or not, the U.S. stock market has performed exceptionally well since President Donald Trump was elected.
The S&P 500 has added $2.04 trillion in market value since Trump's election last November through Monday, according to Howard Silverblatt, senior Index analyst at S&P Dow Jones Indices. The benchmark rose to a record on Monday and then another in early trading Tuesday.
The index initially soared after the election, in part, on hopes of tax reform from the new controversial new president. The U.S. has one of the highest corporate tax rates in the world and a reduction of that would bulk up companies' bottom lines.
One of the biggest beneficiaries from tax reform would be the information technology sector, the stalwart of the U.S. stock market since Nov. 8.
Lower tax rate
A key component of Trump's tax reform plan is to let companies bring overseas profits to the U.S. without paying the 35 percent U.S. corporate tax rate. Companies like Microsoft, Apple and Google-parent Alphabet have billions of dollars parked overseas and a lower tax rate could incentivize them to bring that money back to the U.S.
Tech is up nearly 30 percent since the election, and has also added $1.019 trillion in value to the S&P in the time period, the most out of any sector, S&P Dow Jones' Silverblatt told CNBC in an email.
But tax reform hopes have fluctuated as the administration has faced several hurdles trying to move its agenda forward, including in-party fighting.
"People are in wait-and-see mode in terms of tax reform. We get a bit of a pop every time it gets mentioned, but I think the market is in a bit of disbelief," said Robert Pavlik, chief market strategist at Boston Private.
Still, the S&P 500 is up more than 16 percent since Nov. 8, with some market experts pointing to strong earnings growth, rather than Trump, as a key catalyst for the continuous rise.
"I think this has been more fundamental than anything," said Mike Bailey, director of research at FBB Capital Partners. "It's been mostly about earnings."
Nick Raich, CEO of The Earnings Scout, said corporate earnings growth came in above historical trends in the first half of the year. Earnings for the S&P 500 grew by 15 percent in the first quarter and by more than 11 percent in the second quarter, Raich said.