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Managing Accomplice and the Head of Analysis at Fundstrat International Advisors, talking on CNBC’s The Alternate on Oct. thirty first, 2023.
Adam Jeffery | CNBC
Buyers are embarking on a busy week with key tech firms reporting and an enormous Federal Reserve assembly – and it might form the following steps for the inventory market’s rally, mentioned Fundstrat’s Tom Lee.
Microsoft and Alphabet are posting their newest outcomes on Tuesday after the closing bell, whereas Meta Platforms, Apple and Amazon are due on Thursday afternoon.
Alphabet, Amazon, Meta and Microsoft popped to recent highs throughout Monday’s session. The surge in Large Tech helped carry the S&P 500 to a recent report – and its first shut above 4,900. The Dow Jones Industrial Common additionally closed at a brand new excessive.
“We anticipated new highs by late January, which was on schedule,” Lee instructed CNBC’s Contessa Brewer on “Final Name.” “And I feel this week goes to inform us how a lot additional we go.”
“We had been penciling in 5,000 [on the S&P 500], and we might possibly go increased,” he mentioned. “However from there, I feel an air pocket types.”
That is as a result of traders might be grappling with one other key catalyst: The Fed’s two-day coverage assembly, which culminates with a price choice on Wednesday.
Lee mentioned that traders will get nervous concerning the Fed and its path ahead on charges. “I do not assume the Fed is within the place to chop charges, however what is going on to be essential is how their views round which might be evolving,” he mentioned.
He additionally famous that parabolic market strikes, which we have now had since October 2023, have a tendency to finish in “a fairly large retracement.”
“I do assume we proceed to be sturdy, however then after that, there is a huge air pocket,” Lee added.
His year-end goal for the S&P 500 is 5,200.
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