Fundstrat’s Tom Lee stated on CNBC he expects the S&P 500 to achieve 7,900 to eight,000 this month.
He additionally named Ethereum as an surprising chief of the subsequent leg increased, alongside the Magnificent Seven and software program shares.
Lee’s case for an August breakout
Lee stated a deleveraging occasion just a few weeks in the past pushed money to the sidelines. It additionally left investor sentiment too bearish, he stated.
He added that sturdy earnings and cooling inflation fears at the moment are driving a “chase” increased. AI spending additionally stays a powerful theme, Lee stated.
The anchor framed the latest pullback as froth clearing, not a basic shift. Lee agreed, then pointed to contemporary earnings knowledge.
This quarter’s outcomes are operating greater than $15 forward of estimates set on the quarter’s begin, Lee stated. He added that 2027 earnings estimates have risen $8, nearing 410, with room to achieve 425 by season’s finish.
Lee isn’t any stranger to daring S&P 500 calls. He made a equally aggressive prediction final November, and different strategists have floated comparable 8,000 targets for this yr.
Ethereum’s uncommon function within the bull case
Lee’s Ethereum remark got here with an essential caveat. He was not saying Ethereum would push the S&P 500 increased, however quite play a job on boosting DRAM, and reminiscence shares, the present catalyst for all the market.
He stays bullish on semiconductor, DRAM, and reminiscence shares. These teams are correcting now, however he expects a restoration much like 1997 and 1998.
“The restoration right here, I feel, goes to be led by the Magnificent Seven, software program and ethereum,” Lee stated.
That places Ethereum in the identical sentence as mega-cap tech and software program. It’s a separate, forward-looking decide from his semis and reminiscence thesis.
The remark lands as Ethereum has drawn extra whale shopping for. ETF inflows have additionally picked again up in latest weeks.
A extra measured take from Lee’s panelist
Fellow panelist on CNBC, Dan Greenhouse, provided a cooler view. He famous the S&P 500 was already close to 7,700, so an 8,000 goal is a modest share transfer.
Greenhouse additionally argued the earnings image is broad, not simply tech-driven. Financials, insurers, and card firms are all signaling energy, he stated.
He pointed to 2 straight weeks of jobless claims below 200,000, a uncommon stretch traditionally. That backdrop, he stated, is just optimistic.
The bullish case echoes a broader debate over AI valuations. Some strategists query how far this rally can stretch.
Whether or not Ethereum can hold tempo with the Magnificent Seven and software program by August stays unproven. That reply will probably hinge on ETF flows and on-chain exercise within the coming weeks.
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