Tom Lee: S&P 500 could rise to 7,000 points by the end of the year!

Tom Lee: S&P 500 could rise to 7,000 points by the end of the year!

In a recent analysis, Tom Lee, co-founder of Fundstrat, identified four key factors that could lead to a significant breakout in the S&P 500 by the end of 2025. According to dailyhodl.com, strong corporate earnings, monetary easing by the Federal Reserve, positive developments related to government shutdowns and current deleveraging in the markets are key aspects that could promote more favorable conditions for equities.

Lee emphasizes that the last ten weeks of the year are crucial. During this period, he expects continued high corporate profits and monetary easing by the Fed. That combination could lead to a rise in the S&P 500, which Lee predicts will reach at least 7,000 points by the end of 2025, which he himself considers a low estimate.

Factors driving the market upswing

In addition to economic indicators, Lee cites the increased VIX (volatility index) as an indicator of recent deleveraging processes. These developments could have a positive impact on both investors and consumers. Another important aspect is the progress in artificial intelligence (AI) technology, which opens up new opportunities for companies and could therefore also benefit consumers.

Lee explains that companies are increasingly aligning their spending priorities toward 2026, indicating potential stabilization and further growth. These investments in technology should help companies increase their margins and exploit growth potential.

Outlook for the coming year

Another positive indicator is the possibility of lower interest rates next year, which could help ease financial burdens for both households and consumers. Taken together, these factors could lead to a sustainable upswing and further boost the markets.

So all eyes are on the last weeks of 2025. Investors should hope for positive news on government shutdowns and monetary policy, while also keeping a close eye on corporate earnings. Lee's analysis shows that there are concrete reasons for optimism as market conditions stabilize and the technology industry's innovation continues to provide new impetus.