Fundstrat strategist Tom Lee forecasts the S&P 500 will reach 7,900 to 8,000 in the coming weeks, implying as much as 3.6% upside from Wednesday's close of 7,723.55.
Lee issued the forecast to clients via video late Wednesday, with the call public by Thursday morning. The range extends from current levels to a target that would represent one of the larger single-month rallies the index has posted in the past two years.
Fundstrat, the research arm of Bank of America, counts Lee as its chief equity strategist. Lee has built a public following for tactical market calls and historical market analysis. His August forecast arrives as the S&P 500 trades within 2% of its all-time high, set in late July, and as investors place bets on continued strength or position for pullback.
The 7,900-8,000 range would close the month at levels not yet reached. If the index moves to the midpoint of 7,950, that would amount to a 2.9% gain from the Wednesday reference level. Equities have posted gains in six of the past eight months on the back of artificial intelligence enthusiasm and moderating inflation expectations.
Lee's call does not specify a probability weighting or the conditions under which the index would fail to reach his target. He offers no comment on drivers beyond the forecast range itself.
