Wall Street Rally Gains Momentum as Doubters Wait for a Fall – Tom Lee

Fundstrat’s Tom Lee believes the current surge in U.S. equities is being met with misplaced skepticism.

Despite the S&P 500 climbing 17% from recent lows and approaching its previous record, many investors remain convinced the rally won’t last.

Lee characterizes the movement as one of the “most hated” in recent memory—driven more by disbelief than momentum. He suggests the hesitancy is tied to past shocks, referencing a steep 20% drop following an unexpected market event.

Drawing on past market behavior, Lee compares the mood to the post-pandemic rebound in 2020 and the October 2022 lows, noting that widespread bearishness persisted even as markets began to recover. “Investors tend to turn bullish only once new highs are set,” he said, arguing that doubt typically fades once milestones are broken.

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He also highlighted Bitcoin’s performance as a potential leading signal for equities. With BTC having topped $111,000 weeks before the S&P’s latest surge, Lee sees both markets as riding the same wave of global liquidity expansion.

As for recent concerns around the U.S. credit rating, Lee downplayed Moody’s downgrade, reminding investors that previous rating cuts from S&P in 2011 and Fitch in 2023 had little long-term impact on market direction.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.