Tom Lee, head of research at Fundstrat, says the bullish case for US stocks is strengthening, with the S&P 500 possibly rising above 7,700 before the end of the year.
In a new CNBC interview, Lee says say Improved earnings estimates, AI-driven productivity gains and reducing geopolitical risk could further fuel upside potential for stocks.
“To me, this means I think the uptrend for stocks is getting stronger this year. I think S&P above 7700 is very likely.”
Lee also points to the possibility that easing tensions in the Middle East could lower the risk premium in oil prices, which he said would help stocks rise. Lower energy prices could ease inflationary pressures and improve sentiment in financial markets, especially if investors become more confident that geopolitical risks are easing.
Lee adds that stronger earnings expectations are another key pillar of his bullish outlook. Investors have been closely watching whether corporate America can continue to deliver earnings growth after a strong run on stocks in recent quarters. He says rising productivity linked to artificial intelligence could give new impetus to margins and revenue growth.
The strategist remains one of Wall Street’s most bullish voices on stocks as markets factor in resilient corporate earnings, AI enthusiasm and changing macro conditions into 2026. His latest forecast shows that he believes that tailwind will remain intact in the second half of the year.
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