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.
S&P 500 since US election
“I think this has been more fundamental than anything,” said Mike…
click here to read more