Summary
- Tom Lee stated that the U.S. market correction is temporary and will eventually rebound.
- He projected that Nvidia's positive earnings will act as a catalyst for market growth.
- He indicated that the PCE index and policy changes could contribute to rate cuts and market improvement.
Tom Lee, co-founder of Fundstrat, shared positive views on the U.S. stock market.
In an interview with CNBC on the 25th (local time), Tom Lee stated, 'This market correction is a temporary phenomenon,' adding that 'the stock market will eventually rebound driven by three catalysts.'
Nvidia's fourth-quarter earnings were cited as the first market catalyst. Tom Lee projected that 'Nvidia has delivered earnings surprises exceeding market expectations 19 times out of their last 20 earnings reports, and they will post strong results this time as well.' He added, 'Overall market sentiment will also improve thanks to Nvidia.'
The U.S. Personal Consumption Expenditure (PCE) price index was mentioned as the second market catalyst. Tom Lee explained, 'If PCE comes in lower than expected, the Federal Reserve's rate cut cycle could be accelerated. We might even look forward to a May rate cut.'
Lastly, Tom Lee expressed expectations for President Donald Trump's policies. While acknowledging that 'there has been pressure from tariff risks,' he explained that 'policies such as deregulation and expanded investment in Artificial Intelligence (AI) will have a positive impact on the market going forward.'
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
