This Wall Street Veteran Says the Market Has Bottomed — Here’s What He Thinks Comes Next

Fundstrat’s Tom Lee says the market has likely bottomed and reiterates a bullish outlook for the S&P 500, even issuing a bold 7,700 year-end target. His late-March “bottom call” has already preceded a notable rebound in the index, which has clawed back roughly 5% (and is cited as up 8.6% from late‑March lows). Lee is advocating a “Great Rotation” away from concentrated AI/heavy tech into Energy and Materials. The piece highlights State Street’s XLE as a contrarian entry (down ~9% from its high, yielding ~2.5% and up ~25% YTD) and notes XLB’s early signs of strength (trading at ~27.2x trailing P/E with a ~1.75% yield). Market impact: potential sector rotation into energy/materials could broaden leadership beyond mega‑cap tech and support cyclical names.