The markets could rally 'very strongly' if the Fed holds rates in September: Fundstrat's Tom Lee

Tom Lee, Head of Research at Fundstrat, outlines a bullish trajectory for the S&P 500 and Bitcoin despite potential near-term volatility. While a 10% market pullback remains a base case possibility for September or October due to seasonality and Fed uncertainty, the S&P 500 could realistically reach 8,200 by year-end, driven by corporate earnings significantly exceeding expectations. Structural GDP growth appears robust at over 3%, fueled by onshoring and energy infrastructure investment rather than inflationary wage pressure. In the crypto sector, the end of a four-year cycle and potential legislative clarity suggest a massive fourth quarter, with Bitcoin potentially reaching six figures or even $150,000. Institutional allocation is already visible through increased trading volumes in crypto-related stocks, signaling a definitive end to the recent "crypto winter" as investors rotate back from AI into digital assets.