Tom Lee Lists 3 Reasons the Stock Market Is in a “Better Position” Than at Its Early 2026 Peak
The inventory market has staged a main rebound in April. The S&P 500 and Nasdaq hit recent all-time highs this week, erasing all losses from the US-Iran battle.
BitMine Chairman Tom Lee believes the US inventory market is now in a higher place than when it hit its earlier all-time high earlier this 12 months. He outlined three causes for his stance throughout an look on CNBC’s Closing Bell.
US Stock Markets Absorb Oil Shock
According to market information, the S&P 500 closed at 7,022.95 on April 15, surpassing its earlier report from January 28. The Nasdaq completed at 24,016, marking a new report high.
This restoration got here after the S&P had fallen as a lot as 9% from its January peak amid the warfare’s rattling of worldwide markets. Now, each indices have turned optimistic for the 12 months after notable losses in March.
Lee pointed to the resilience as evidence that US equities can take in oil value surges which are crippling different economies. Oil spiked above $100 per barrel after the Strait of Hormuz was blockaded.
However, costs have since retreated as markets have grown cautiously optimistic about a de-escalation in tensions between the United States and Iran.
“I do know that is going to sound counter to what different the viewers may assume however I feel the inventory market is in a higher place as we speak than earlier this 12 months when it made its all-time high as a result of one, we’re now seeing that the US inventory market can deal with a surge in oil whereas it hurts different international locations,” Lee stated.
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His second level centered on company earnings. Lee mentioned earnings have risen since the battle started, which provides the market confidence that the warfare is definitely stimulating the US economic system reasonably than dragging it down.
“Stocks are holding up as a result of the economic system’s really doing higher in the face of this warfare. And I do know it sounds counterintuitive, however a part of it’s the protection spending, you realize, at $30 billion a month. And it might find yourself being, you realize, $60 billion a month. That’s really fairly stimulative to the economic system. This $20 rise in oil is just including about 12 billion a month to the family burden. So on a internet foundation, the warfare is definitely serving to earnings proper now,” Lee mentioned throughout one other appearance at CNBC.
Lee’s third argument facilities round the consensus that surging oil costs will set off a extreme inflation shock.
“Looking again at the historical past of oil spikes, the affect on core is lower than we thought. So I feel there could also be much less of an inflation shock coming,” the government argued.
He maintains a base-case S&P 500 goal of seven,300 for the 12 months, suggesting extra upside of roughly 4% from present ranges.
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