Tom Lee predicts equity rally following expected Fed rate hike

Fundstrat's Tom Lee anticipates a 25 basis point interest rate hike by the Federal Reserve today, suggesting it could trigger a significant equity rally by signaling the end of the current tightening cycle. Lee argues that inflationary pressures are largely driven by temporary distortions that will fade, and he maintains a bullish outlook for the S&P 500, projecting it could reach 8,200 by year-end. He identifies technology and AI as key drivers of growth, though he warns of a potential pullback later this year due to leverage and IPO activity.