Tom Lee Predicts S&P 500 at 8,000 as Ethereum Eyes Breakout

Fundstrat’s Tom Lee expects the S&P 500 to reach 7,900 to 8,000 in August, arguing that strong corporate earnings, improving investor sentiment, and continued artificial intelligence spending could fuel another leg higher. He also identified Ethereum, Magnificent Seven stocks, and software companies as potential leaders of the rally.

Speaking on CNBC, Lee said a deleveraging event several weeks ago forced investors to raise cash and left market sentiment excessively bearish. With those pressures easing, he believes investors sitting on the sidelines could begin chasing stocks higher as earnings remain resilient and concerns about inflation cool.

Lee highlighted corporate profits as a key reason for his bullish S&P 500 forecast. According to him, quarterly earnings are running more than $15 above estimates made at the beginning of the reporting period. Meanwhile, 2027 earnings expectations have increased by about $8 to nearly 410, with Lee suggesting they could reach 425 by the end of earnings season.

His outlook also includes a less conventional market leader: Ethereum.

Lee clarified that Ethereum itself would not drive the S&P 500 higher. Instead, he placed ETH alongside the Magnificent Seven and software stocks as assets that could outperform during the next phase of the broader risk rally.

“The recovery here, I think, is going to be led by the Magnificent Seven, software and ethereum,” Lee said.

He remains optimistic about semiconductor, DRAM, and memory stocks despite their recent correction, comparing the setup with market recoveries seen in 1997 and 1998. Ethereum, meanwhile, has recently benefited from renewed whale accumulation and stronger ETF inflows.

CNBC panelist Dan Greenhouse offered a more restrained interpretation. With the S&P 500 already around 7,700, he noted that reaching 8,000 would require only a relatively modest gain.

Greenhouse also said economic strength extends beyond technology, pointing to positive signals from financial companies, insurers and card issuers. He highlighted two consecutive weeks of US jobless claims below 200,000 as another encouraging indicator.

For Ethereum, sustaining its momentum through August may ultimately depend on continued Ethereum ETF inflows and strong on-chain activity.