Fundstrat's Tom Lee Warns S&P 500 Could Hit 7,700 Before October Correction
Updated
Updated · The Motley Fool · Jun 5
Fundstrat's Tom Lee Warns S&P 500 Could Hit 7,700 Before October Correction
3 articles · Updated · The Motley Fool · Jun 5
Summary
Tom Lee said the S&P 500’s rally may stretch from just above 7,560 to about 7,700 before a correction or bear-market-like phase begins and lasts until October.
Three pressures drive that call: a new Fed chair, an energy shock tied to petroleum-product shortages, and share unlocks tied to giant IPOs such as SpaceX, OpenAI and Anthropic.
Lee said the market has stayed resilient because first-quarter S&P 500 earnings came in near $80 a share versus roughly $70 expected, a beat he says could add 800 to 1,000 index points on an annualized basis.
He still expects the tougher stretch to fade after the midterm elections, setting up a strong rebound, with 2027 potentially delivering some of the best returns of investors’ lifetimes.