Fundstrat head of analysis Tom Lee says the bullish case for U.S. shares is strengthening, with the S&P 500 probably rising above 7,700 earlier than the top of the 12 months.
In a brand new CNBC interview, Lee says enhancing earnings estimates, synthetic intelligence-driven productiveness beneficial properties and easing geopolitical danger may assist gasoline additional upside for equities.
“To me this implies I believe for shares for the 12 months the upside case is strengthening. I believe S&P above 7700 may be very possible.”
Lee additionally factors to the chance that easing tensions within the Center East may scale back the chance premium embedded in oil costs, which he says would assist equities transfer increased. Decrease vitality costs can ease inflation strain and enhance sentiment throughout monetary markets, significantly if buyers develop extra assured that geopolitical dangers are fading.
Lee provides that stronger earnings expectations are one other key pillar of his bullish outlook. Buyers have carefully watched whether or not company America can proceed delivering revenue progress after a robust run for shares in current quarters. He says rising productiveness tied to synthetic intelligence may present one other increase to margins and income progress.
The strategist has remained certainly one of Wall Avenue’s extra optimistic voices on equities as markets weigh resilient company earnings, AI enthusiasm and shifting macro situations in 2026. His newest forecast suggests he believes these tailwinds stay intact heading into the second half of the 12 months.
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