Tom Lee, Fundstrat chief investment officer and head of research, said U.S. equities have tailwinds that should carry the market through May into July [4].
This outlook suggests a period of sustained growth for American stocks despite geopolitical instability and volatile energy prices. If these projections hold, it would signal a strong recovery and a high tolerance for risk among institutional investors.
Speaking on CNBC's "Squawk Box" on April 27, 2026, Lee said the factors driving current market trends [1]. He cited a resurgence in AI-related buying and a shift in software-sector valuations as key drivers for the short-term strength [2].
Lee also pointed to the resilience of the market during recent geopolitical tension. "I think the bottom's in because last week was a period where stocks rose even as the Iran war worsened and oil surged from $87 to $116," Lee said [3].
While some projections placed the S&P 500 around 7,300 [1], Lee expressed a more bullish view during his interview. "It's very probable stocks will sail past 7,700 this year," Lee said [3].
He noted that the current valuation remains attractive even as the market faces powerful tailwinds [3]. This perspective suggests that the market has already priced in much of the risk associated with the ongoing Iran-Israel conflict [2].
“"It's very probable stocks will sail past 7,700 this year."”
Lee's analysis suggests that the market has reached a point of 'bad news immunity,' where stocks continue to climb despite rising oil prices and geopolitical conflict. By focusing on AI-driven growth and valuation corrections in the software sector, Lee is arguing that fundamental technological shifts are currently outweighing traditional macroeconomic risks.
