Tom Lee, the head of research at\u00a0Fundstrat Global Advisors\u00a0and the CIO at Fundstrat Capital, has made some bold predictions for the S&P 500 in 2026.<\/p>\n
Lee Sees S&P 500 At 7,700 By 2026 End<\/p>\n
During Monday\u2019s appearance on CNBC\u2019s \u201cSquawk Box,\u201d Lee forecasted a significant rise in the S&P 500. He reiterated his <\/a>projection of the index to reach 7700 by the end of 2026, with a possible 15-20% correction in the latter half of the year.<\/p>\n Lee acknowledged that the market\u2019s performance in 2026 would be marked by \u201cjoy, depression, and rally,\u201d similar to the pattern seen in 2025. He attributed the potential market volatility to the Federal Reserve\u2019s rate policies but expressed optimism about several factors, including the anniversary of tariffs, the Fed\u2019s rate cuts, and a possible rebound in the ISM index.<\/p>\n Lee also highlighted sectors that had previously lagged, such as energy, financials, and small caps, as potential sources of market growth. He mentioned that small caps had reached an all-time high in 2025, and lower interest rates were likely to benefit them.<\/p>\n \u201cMonetary easing, earnings growth is starting to look better, and if we have mergers, I think all of these are tailwinds for small caps,\u201d stated Lee.<\/p>\n See Also:\u00a0Bernie Sanders, Kamala Harris, Warren And Others Slam Trump\u2019s Venezuela Raid As \u2018Illegal,\u2019 Warn Oil-Driven Military Strike Risks Global Precedent<\/a><\/p>\n Small Caps Poised To Lead Market<\/p>\n Lee\u2019s predictions align with the broader market outlook for 2026. Veteran investor and CIO of Navellier & Associates,\u00a0Louis Navellier, recently\u00a0advised investors <\/a>to focus on stocks with strong earnings growth\u00a0as the market experiences a potential \u201cbig flip\u201d in January. This shift could further support the S&P 500\u2019s growth, as suggested by Lee.<\/p>\n Moreover,\u00a0small caps are expected <\/a>to outperform\u00a0mid and large caps in 2026, according to Bank of America. It outlined five reasons small-cap stocks could surge in 2026: improving earnings momentum, a capex cycle that lifts revenues, Fed rate cuts easing financing pressures, lower tariffs and deregulation boosting margins, and attractive valuations supported by favorable positioning.<\/p>\n This aligns with Lee\u2019s positive outlook for small caps and suggests that the market could indeed see the growth he anticipates.<\/p>\n Price Action: Over the past year,\u00a0Invesco QQQ Trust, Series 1\u00a0(NASDAQ:QQQ<\/a>) and\u00a0Vanguard S&P 500 ETF\u00a0(NYSE:VOO<\/a>) climbed 16.89% and 14.74%, respectively, as per data from Benzinga Pro<\/a>. <\/p>\n READ NEXT:<\/p>\n Image via Shutterstock<\/p>\n Disclaimer:\u00a0This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.<\/p>\n","protected":false},"excerpt":{"rendered":"Tom Lee, the head of research at\u00a0Fundstrat Global Advisors\u00a0and the CIO at Fundstrat Capital, has made some bold…\n","protected":false},"author":2,"featured_media":389752,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,32267,129249,165395,76704,41004,11670,11669,46,11668,64798,129259],"class_list":["post-389751","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-category-analyst-color","tag-category-equities","tag-category-guidance","tag-category-markets","tag-category-news","tag-category-tech","tag-cms-wordpress","tag-economy","tag-pageisbzpro-bz","tag-symbol-qqq","tag-symbol-voo"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/389751","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=389751"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/389751\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/389752"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=389751"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=389751"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=389751"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}