Tom Lee says the 'face-ripping' rally he predicted is merely delayed

By Steve Goldstein

Fundstrat's Tom Lee says the stock market is now poised to gain on incrementally dovish news.

Tom Lee, head of research at Fundstrat, put a characteristically positive spin on the Federal Reserve's interest-rate decision.

In a video interspliced with references to "Game of Thrones" and "The Simpsons," Lee said that the "face-ripping" rally he previously predicted may come, but just with a delay.

He said the Federal Open Market Committee's statement and Kevin Warsh's ensuing press conference was "peak hawkish Fed." But, Lee added, there are incrementally dovish data points ahead, like the new methodology for the core personal consumption expenditures price index due at the end of the month that could reduce the year-on-year change by 0.4 percentage points.

He said that other Fed speakers may walk back some of Warsh's hawkish tone.

Lee also pointed to the technical picture, noting a "waterfall"-like decline but rising relative strength index readings. The last time that happened, in August, stocks rallied higher.

U.S. stock futures (ES00) were higher on Thursday following three consecutive losses for the S&P 500 SPX, and seven declines in eight sessions.

-Steve Goldstein

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09-17-26 0350ET