Markets Could Be Bottoming, Tom Lee Says

The stock market is on course to start off March by faltering. Fundstrat Head of Research Tom Lee believes the market could be bottoming, potentially this week. 

“DOGE is creating austerity. Tariffs are creating uncertainty. Businesses are maybe sitting on their hands. This is why markets have been sinking and momentum has done so poorly,” Lee said on CNBC’s  Squawk Box with Joe Kernen and Melissa Lee. 

One reason why the market could have already hit a low? Lee pointed to the S&P 500’s gains last Friday even with bad headlines coming out of Washington from President Donald Trump’s meeting with Ukrainian President Volodymyr Zelensky.

Lee is looking to the jobs report on Friday like other investors. He expects money managers to initially panic if the data comes in too weak but hopes they will eventually bank on the “Fed put” to bolster markets.  

“Not only is the Fed put back because the Fed now will need to cut, but [also the White House] doesn’t want to get to stall speed, so the ‘Trump put’ comes back, which [also] helps markets,” he said.    

Subscribe to FS Insight research by Fundstrat to learn Lee’s forecasts for the upcoming jobs report.

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