Tom Lee of Fundstrat predicts the S&P 500 will reach 7,900 to 8,000 this month. He also named Ethereum as an unexpected leader of the next leg higher, alongside the Magnificent Seven and software stocks. Lee justifies his optimism by a recent deleveraging event that left investors too bearish, and by strong earnings boosted by artificial intelligence. This quarter’s results are running more than $15 ahead of estimates set at the quarter’s start, and 2027 earnings estimates have risen $8, nearing 410, with room to reach 425. Lee clarifies that Ethereum will not push the S&P 500 higher directly, but rather play a role in supporting the semiconductor, DRAM, and memory sectors, currently the catalysts for the entire market.
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