Tom Lee Says Mag-7 Bear Market Is Over, But Trouble Is Brewing For Rest Of Wall Street: 'Day Of Reckoning'
Fundstrat’s Tom Lee says the Mag‑7 (big tech) and software bear market is over, driven by continued AI demand, but warns of a targeted “rolling bear market” for non‑AI, over‑extended stocks later this year. He flags three near‑term threats — midterm seasonal volatility, a supply overhang from IPO lockup expirations, and a critical energy/product inventory shortage — and expects gains to be highly concentrated in AI suppliers and major tech names. The message implies a fragmented market: indices may remain resilient but leadership will be narrow, favoring investors overweight in AI/exposure to scarce products while leaving cyclical and energy‑sensitive firms more vulnerable.