Tom Lee, head of Fundstrat research, says the bullish case for US stocks is strengthening, with the S&P 500 likely to rise above 7,700 before the end of the year.
In a new interview with CNBC, Lee said He says Improving earnings estimates, AI-driven productivity gains, and mitigating geopolitical risks could help fuel further upside for stocks.
“For me, this means I think the upside is strengthening for stocks for this year. I think the S&P above 7,700 is very likely.”
Lee also points to the possibility that easing tensions in the Middle East will reduce the risk premium built into oil prices, which he says will help stocks rise. Lower energy prices could ease inflation pressures and improve sentiment in financial markets, especially if investors become more confident that geopolitical risks are fading.
Lee adds that stronger earnings expectations are another key pillar of his bullish outlook. Investors are closely watching whether U.S. companies can continue to deliver earnings growth after stocks’ strong rally in recent quarters. He says the increased productivity associated with AI could provide another boost to profit margins and revenue growth.
The strategist has remained one of Wall Street’s most bullish voices on stocks as markets weigh resilient corporate earnings, AI enthusiasm and changing macro conditions in 2026. His latest forecast suggests he believes those tailwinds remain intact heading into the second half of the year.
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