S&P 500 Poised for Year-End Surge, Says Tom Lee

According to BlockBeats, Tom Lee expressed optimism on CNBC's 'Squawk Box,' suggesting that the S&P 500 is set for a year-end rally, with targets of 7200-7300 points being achievable in December. Lee emphasized his bullish stance, stating that traders are overlooking key factors such as liquidity, capitulation selling, and timing windows. Lee highlighted that the end of quantitative tightening (QT) is a significant tailwind for the market. With the Federal Reserve preparing to cut interest rates this month and halting balance sheet tightening after nearly three years, he anticipates a substantial increase in liquidity. In private meetings, Lee noted that institutional sentiment has collapsed, with many fund managers conceding defeat and hoping to hold out until January. However, if December sees strong market performance, Lee predicts a rush to buy in order to avoid career risks associated with underperformance. This behavior, known as 'performance chasing,' could lead to significant surges in broad market ETFs.