Fundstrat’s Tom Lee Says Four Catalysts Could Trigger Major Market Breakout by End of 2025 – Here’s His Target
Fundstat’s Tom Lee says there are four reasons why the S&P 500 could be setting up for a significant breakout before the year comes to an end.
In a new interview with CNBC, Lee says that strong earnings reports, the Federal Reserve easing up on monetary policy, good news about the government shutdowns and deleveraging may create a perfect storm for stocks.
“We’re entering the sort of critical last 10 weeks of the year at a time when not only earnings are good, but we have a Fed that’s going to be in an easing cycle. I think there’s going to be some good news eventually on the shutdown.
And then we know that there was already a bit of deleveraging that took place about 10 days ago because of that VIX (the Chicago Board Options Exchange’s Volatility Index) spike and the headlines.
And so there’s going to be, I think, a setup for a chase into year end. So I think all of this means that the S&P can close at least at 7,000. I actually think that’s a low number by the end of the year.”
Lee says strides in artificial intelligence (AI) technology will also help businesses, which in turn could help consumers.
“I’m getting the sense that AI visibility has actually improved and I think that there’s actually payback companies are seeing and as they start to think about 2026, that’s a priority for [spending].
So visibility should be improving and then we have potentially lower interest rates next year which is going to put some easing burdens on households and consumers.”
Generated Image: Midjourney
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
PayPal and OpenAI Transform Shopping Experience with AI-Driven Payment Solutions
- PayPal partners with OpenAI to integrate its digital wallet into ChatGPT, enabling direct purchases via AI-powered transactions for the first time in e-commerce. - The 2026 launch will let users click "Buy with PayPal" in ChatGPT while merchants access OpenAI's 700M weekly users through OpenAI's Agentic Commerce Protocol (ACP). - PayPal handles backend operations like payment validation and dispute resolution, aligning with CEO Alex Chriss' vision of AI-driven "personalized shopping paradigms." - OpenAI
ZAR's $12.9M Stablecoin Initiative Seeks to Open Access to Pakistan's Unbanked Financial Sector
- ZAR, a stablecoin startup, secured $12.9M led by a16z to target Pakistan's 100M unbanked adults via retail networks. - The platform enables cash-to-stablecoin conversion through QR scans at local stores, linking to global Visa cards. - ZAR leverages Pakistan's mobile kiosks and money agents, mirroring Africa's mobile money success in localized adoption. - With $20M raised total, ZAR aims to expand to Africa in 2026, aligning with Pakistan's emerging crypto regulatory framework.
Kalshi’s Federal Lawsuit Challenges CFTC Authority Amid Conflict With New York Sports Betting Prohibition
- Kalshi sues New York over sports betting ban, claiming CFTC's federal jurisdiction under the Supremacy Clause. - New York alleges Kalshi operates unlicensed contracts as "sports wagering," demanding compliance with state gambling laws. - Legal experts highlight federal courts' prior favor toward Kalshi, citing CFTC's 2020 DCM designation as regulatory shield. - Case could set precedent for state-federal regulatory conflicts, with Kalshi risking $50M+ annual revenue if banned in New York. - Mixed judicial
IBM's Digital Asset Oasis: Establishing Confidence Amidst the Untamed World of Tokenized Finance
- IBM launches Digital Asset Haven with Dfns to secure tokenized assets across 40+ blockchains, offering custody, compliance, and multi-party approvals. - Platform integrates hardware security, MPC/HSM signing, and offline cold storage to meet global regulatory standards for institutional digital asset management. - Growing institutional demand for tokenization drives IBM’s SaaS platform, aligning with its quantum computing and hybrid cloud strategies to dominate digital finance.
Trending news
MoreCrypto prices
More
