Tom Lee, head of research at Fundstrat, predicts a major market rally driven by four factors: cooling oil prices, easing Treasury yields, a potentially softer Federal Reserve stance, and oversold market conditions. Technology stocks, particularly AI-linked chip makers like AMD, which recently reached a $1 trillion valuation, are leading the bounce. Lee maintains his S&P 500 target of 8,000 for the month, noting that crypto’s August rally often leads stock moves by about a month. The durability of this rally will depend on Micron’s earnings next week, which could confirm whether chipmakers can broaden the gains or if the bounce remains narrow.
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