Tom Lee: The S & P 500 index is expected to return to a new high of 7,900 - 8,000 by the end of August

Tom Lee, founder of FundstratGlobal Advisors, predicts that the S & P 500 index will return to the 7900 - 8000 range and set a new record by the end of August. In a report released Friday, Lee listed several reasons for driving the market's rapid rebound. He pointed out that the Federal Reserve did not have an interest-rate meeting this month, and the July non-farm payrolls report was weaker than expected and inflation cooled. These factors may have changed the market's expectations for a recent interest rate hike and become a catalyst for the index to rise. In addition, Lee believes that a strong second-quarter earnings season, improving 2027 earnings prospects, and the artificial intelligence (AI)-related deleveraging process that he judges is coming to an end will also provide additional boost to the S & P 500.