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Managing Accomplice and the Head of Analysis at Fundstrat International Advisors, talking on CNBC’s The Trade on Oct. thirty first, 2023.
Adam Jeffery | CNBC
Traders are embarking on a busy week with key tech corporations reporting and a giant Federal Reserve assembly – and it may form the subsequent steps for the inventory market’s rally, mentioned Fundstrat’s Tom Lee.
Microsoft and Alphabet are posting their newest outcomes on Tuesday after the closing bell, whereas Meta Platforms, Apple and Amazon are due on Thursday afternoon.
Alphabet, Amazon, Meta and Microsoft popped to recent highs throughout Monday’s session. The surge in Large Tech helped carry the S&P 500 to a recent report – and its first shut above 4,900. The Dow Jones Industrial Common additionally closed at a brand new excessive.
“We anticipated new highs by late January, which was on schedule,” Lee advised CNBC’s Contessa Brewer on “Final Name.” “And I feel this week goes to inform us how a lot additional we go.”
“We have been penciling in 5,000 [on the S&P 500], and we may perhaps go larger,” he mentioned. “However from there, I feel an air pocket types.”
That is as a result of buyers can be grappling with one other key catalyst: The Fed’s two-day coverage assembly, which culminates with a price choice on Wednesday.
Lee mentioned that buyers will get nervous concerning the Fed and its path ahead on charges. “I do not assume the Fed is within the place to chop charges, however what is going on to be essential is how their views round which can be evolving,” he mentioned.
He additionally famous that parabolic market strikes, which we’ve had since October 2023, have a tendency to finish in “a fairly large retracement.”
“I do assume we proceed to be robust, however then after that, there is a large air pocket,” Lee added.
His year-end goal for the S&P 500 is 5,200.
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