The analyst veteran sends a blurry report of what will be for the promotions initially appeared in TheStret.
The shares decreased dramatically after President Donald Trump on April 2. Published widespread rates. The so -called “liberation day” report was made stricter than expected rate rates, so investors reset the US economic prospects and corporate income.
The market drum of the stock market is not long lasting.
President Trump changed the course a few days later, publishing a 90 -day pause due to the majority of the daytime rates of liberation to clear the trade negotiations. Feeling the worst things, it can be for us, investors have been looking for negotiation hunting by buying a fall.
Related: The Bank of America reveals the observed Fed interest rate forecast in 2026.
Since then, the rally has been extraordinary, especially given the risk of the US economy slowing down.
Adhesive inflation, loss of jobs and injured confidence still means that stagnation or direct recession is possible. This would be bad for shares, given that a healthy economy is the main area of sales and profit growth, which is the most important return on the market market.
One analyst who was not surprised by them is Fundstrat spokesman Tom Lee. Lee since 1990 Was the Wall Street Pro and after the day of liberation, it correctly predicted that stock would probably be noticed and head.
Now that Lee has been proven to be right, what do he think will take place in the stock market? This week, he has updated his perspective, offering a blurred forecast that can draw people’s attention.
Fundstrat spokesman Tom Lee updated his stock market prospects after all time S&P 500. Image Source & Colon; Getty images and period; “Loading =” Eger “Height =” 540 “Width =” 960 “Class =” YF -GFNOHS Loader “/>
Fundstrat spokesman Tom Lee has updated his stock market prospects after all the S&P 500 heights of all time.Video source and colon; Getty images and period;
Double federal reserves’ powers are directed to low inflation and employment. Unfortunately, these goals are often contradictory, which is why the Fed is behind the curve to set a monetary policy.
For example, increasing interest rates slow down economic activities and reduce inflation. However, as we have seen lately, they can also cause forgiveness.
Related: The legendary fund manager issues the stock market forecast because the S&P 500 tests are of all time highlands
2021 Fed President Jerome Powell misrepresented that inflation would be temporary. Instead, inflation occupied and accelerated up to 8%, encouraging the Fedi to overcome the most vanish interest rates since Paul Volcker was fed, and struggled with inflation in the early 1980s. In total, the Fed increased its Fed Funds by 5.25%to reduce inflation.
Increase in interest rate increased, given that inflation has retreated from 3%. However, they damaged the labor market and the progress of inflation struck.
The latest report of the Bureau of Labor Statistics shows that the unemployment rate has increased to 4.2% from the lowest 3.4% 2023. 2023 Meanwhile, the consumer price index in May Was 2.4%as last September.
According to Challenger, Gray and Christmas, more than 696,000 Americans lost their jobs by May this year, partly due to the reduction of jobs at the Government Efficiency Department (Doge). This year, the jaw reduced the dismissal by 80%a year.
Someone guesses what will happen near the economy. However, stocks have reviewed that inflation has slowed down and increased unemployment.
Investors seem to believe that market any worse news will be viewed as good news, as higher unemployment or weaker economic growth will make Fed reduce prices.
We have already seen evidence that can happen.
At the end of last year, Fed reduced interest rates by 1%to increase the job market, indicating its progress for inflation. Although the Fed has since moved to the aside and waited for the rates this year to increase inflation this year, many economists expect this pause to turn out to be temporary.
CME’s closely monitored Fedwatch tool estimates that speed has fallen in September, while the head of Wall Street is predicting the reduction of seven tariffs in 2026, when the Fed is lagging behind the curve in the fight against unemployment.
Tom Lee’s many years of Wall Street experience means that he is browsing more than its good and bad markets, including the boom and bust of the Internet, the great downturn, Covid and 2002. The bear market.
This experience helped him to accurately anticipate the bull market in 2023. And recently in April. At the bottom of the stock market.
More experts:
Lee and his team believe that the tank has more potential gas to promote higher stock prices.
This week, Mark Newton, head of technical analysis of Lee technical analysis this week, said: “As always, trying to spend time with economic data, is not properly advisable, and the SPX impetus to new heights has impetus and broad -scale participation signs, making it difficult to disappear immediately.”
Many, including Newton, initially thought the stock would have a difficult time when the S&P 500 would reach their February. However, Newton has become more promoted, given that the rally expanded by incorporating stocks to other important sectors, except technology, including finances.
“Historically, we have seen that technology is superior, but now we really see the finances begin, which is, of course, the second largest S&P sector in 14%. Last week, when you look at what surpassed, it was more than 3% – a very, very good sign, ”said Newton.
Lee pointed out that although retail investors have still followed the “buy contempt” of the mentality, institutional investors remained more cautious, holding more dry powder than they could have been different.
The possibility that professional money managers speed up the purchase, so that the S&P 500 index is too much behind may mean that the least resistance pathway will remain greater over time.
“We are at the beginning of the new bull market,” Lee said openly.
Related: Rare event can drive a S&P 500 record rally
The analyst veteran sends a blurred report of what’s for the following, the first -time appeared in TheStret 2025. 1 July
This story was initially reported by Thestretet in 2025. July 1, where she first appeared.
