undefined | Fundstrat's Tom Lee says the market has bottomed, stocks are headed to all-time highs

Fundstrat’s Tom Lee told CNBC that the stock market has likely hit its bottom after a brief escalation in the U.S.–Iran conflict and that equities are now on a path back to all‑time highs. Citing the recent cease‑fire agreement, Lee noted that the “rate of change” is now a de‑escalation, and he projects the S&P 500 will reach 7,300 by year‑end – roughly a 7.6 % gain from current levels. The major indices surged on Wednesday, with the Dow jumping more than 1,300 points, its best day since April 2025, while oil prices fell sharply as the war cooled.

Lee highlighted the “Magnificent Seven” – Apple, Alphabet, Amazon, Nvidia, Meta Platforms, Microsoft and Tesla – as the primary drivers of the rally, and he also pointed to software stocks, energy, and financials as sectors poised for strong performance. The CNBC Mag 7 Index and the State Street Financial Select Sector SPDR ETF (XLF) each closed over 2 % higher, underscoring the breadth of the market’s advance.

In addition to equities, Lee is watching crypto, specifically Ethereum, which he called “the number one performing asset class” since the conflict began. He argued that the negative correlation between oil and the Mag 7, Ethereum, and software stocks has been at its strongest in nearly a decade, suggesting that as oil prices flatten or decline, these assets will attract further buying and have already become relatively inexpensive.

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