Tom Lee: Market has Become 'Desensitized' to Iran War, S&P 500 Could Hit 7,700

BlockBeats News, April 28: The U.S. stock market continued its rally on Monday, with the S&P 500 closing up 0.12% at 7173.91 points, hitting another all-time high. Tom Lee, the founder of Fundstrat and known as the "Wall Street Oracle," stated that the market has largely absorbed the impact of the Iran conflict, and the S&P 500 is expected to further rise to 7700 points this year.

In an interview with CNBC, Tom Lee described the U.S. economy as demonstrating "amazing resilience," indicating that the market has passed the current round of geopolitical stress test. He believes that despite the ongoing tension in the Middle East, investor sentiment has significantly "desensitized."

Lee pointed out that the three core drivers currently boosting U.S. stocks are:

Strong corporate earnings, with over 89% of companies reporting earnings above expectations;
The productivity gains from AI are beginning to materialize;
The recovery speed of the private credit market is faster than expected.

He also mentioned that historical data shows U.S. stocks tend to swiftly price in major geopolitical conflicts early on and gradually rebound. Although the situation in the Strait of Hormuz continues to drive up oil prices, the U.S. economy currently maintains a strong anti-inflation capability.

According to his forecast, the S&P 500 index still has about 7% upside potential to reach the 7700 point target.