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      Fundstrat Strategist Predicts Market Rally Post Midterms Amid Support for Tech and Crypto

      Tom Lee, a strategist at Fundstrat, has indicated that the U.S. stock market may experience a correction from mid-October until the midterm elections. However, he believes that technology and cryptocurrency stocks could see a resurgence afterward, particularly if the Democratic Party becomes more supportive of the CLARITY Act and data-center projects. Lee argues that current concerns regarding Democratic opposition to these initiatives are unfounded, citing the economic benefits that data centers provide to communities and the historical support for the CLARITY Act among Democrats.

      Lee anticipates that the macroeconomic environment will become more favorable for risk assets following the elections. He noted that recent job reports have weakened the likelihood of aggressive interest rate hikes by the Federal Reserve, which had been a concern for investors. With expectations of softer inflation readings in the coming months, Lee believes that the Fed may ease its hawkish stance, potentially leading to bond yields normalizing below 5%.

      In terms of market performance, Lee predicts that the S&P 500 could rise by as much as 9% by the end of the year, with estimates suggesting it could reach between 8,200 and 8,400. He also highlighted that earnings growth is accelerating, with third-quarter earnings expected to approach 30%, and 2027 earnings estimates showing an increase of over 20% since the beginning of the year.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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