The US-Iran ceasefire boosts market sentiment, Tom Lee says the US stock market's phase bottom may have been confirmed
Due to Trump's announcement of a two-week temporary ceasefire between the U.S. and Iran, market risk sentiment quickly rebounded, and the three major U.S. stock indices saw a significant rebound. The Dow Jones Industrial Average rose more than 1300 points in a single day, marking its best performance in nearly a year; WTI crude oil futures, on the other hand, plummeted over 16%.Tom Lee, head of research at Fundstrat, stated that the current market has confirmed a phase bottom and is moving back toward historical highs. He pointed out that despite the previous surge in oil prices and escalation of conflicts, the stock market did not show a significant decline, indicating strong market resilience, while the ceasefire has become a catalyst for sentiment reversal.He expects that the S&P 500 index may rise to 7300 points within the year, which still has about 7.6% upside potential from the current level, and is optimistic about the subsequent performance of technology stocks, software, energy, and financial sectors. Among them, the "seven tech giants" are seen as the core driving force behind this round of rebound.Several institutional investors also believe that as geopolitical risks ease and oil prices fall, the market has entered a "relief rebound" phase, combined with the approaching earnings season, making the current time a potential window for buying on dips.