A recent survey by CNBC found that most investors believe the stock market will flourish in a second Trump term. But that sentiment could be nostalgic thinking at work because many remember the S&P 500's gains during much of Trump's first four years in office.

Trump's inauguration on January 20 could also throw the markets some curve balls. He is expected to release at least 25 executive orders in his first day on a range of issues from immigration to energy and crypto policy.

A reevaluation of which stocks and sectors have, will, or could potentially in the future see outsized gains due to the re-election of Donald Trump. Read what investors need to know.

History offers mixed insight. On one hand, the S&P 500 performed very well during Trump's first presidency, and some analysts anticipate strong returns in his second term driven by deregulation and tax cuts. On the other hand, the S&P 500 currently trades at an expensive valuation, which hints at turbulence in the coming months and years.

Investors may be protecting themselves in case the President-elect swings big on tariffs and is serious about mass deportations.

The stock market climbed to record highs in 2024, extending banner gains achieved the previous year. The S&P 500 -- the index that most people's 401(k)'s track -- climbed nearly 28% this year, as of Monday.

The U.S. stock market has defied expectations once again in 2024, with the S&P 500 surging nearly 25% and setting nine all-time highs throughout the year. This marks the second consecutive year of significant growth for the index,