S&P 500 Could Go As High as 6,600 This Year After Shrugging Off ‘Five Shocks in Five Years,’ According to Fundstrat’s Tom Lee

Fundstrat’s head of research, Tom Lee, believes that the S&P 500 will march to new record levels by the end of 2025 after brushing aside multiple shocks over the last few years.

In a new CNBC interview, Lee says the S&P 500 is in the midst of the “most hated V-shaped” rally after the stock market index recovered from a 2025 low of 4,835 to a new all-time high of 6,215 points.

According to Lee, many investors dumped their stock holdings during the market’s early-year decline, only to be left on the sidelines as equities staged a strong rebound.

“A lot of folks liquidated at the lows, but we know that whenever the VIX (volatility index) is above 60 and falls below 30, you’ve made a decisive low. 

And now visibility is better, tariffs aren’t as bad as we expected, and the inflation impact has been very muted, and outside of tariffs, [underlying] inflation is much lower than people expected.”

Looking ahead, Lee believes that there’s no reason to be bearish on the S&P 500 after casting off five shocks in half a decade.

“I think there’s more upside to 6,600 [points] because the P/E (price to earnings) of the market can go up a lot. We already had five shocks. We had the Covid shock, the supply-chain shock, the inflation shock, the Fed-fastest-hikes-in-history [shock] and then we had the tariff shock. 

So five shocks in five years, and earnings kept growing. If this was a stock, we’d say, ‘Look if you try to kill it five times and it still grew earnings, we would put a much higher multiple.”

As of Monday’s close, the S&P 500 is trading at 6,198 points.

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