The markets could rally 'very strongly' if the Fed holds rates in September: Fundstrat's Tom Lee
CNBC Television
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August 31, 2026 at 01:46 PM UTC
Bullish
90% Confidence
Watch on YouTube
Key Points
- August was positive for stocks, but September could see an upside surprise if the Fed doesn't hike rates on September 15th.
- Crypto fundamentals are strong due to tokenization, AI, and institutional interest, with the 4-year cycle ending and Korean investors returning.
- Bitcoin could reach six figures, and the S&P 500 has significant upside by year-end, with structural GDP growth above 3%.
AI Summary
Tom Lee of Fundstrat believes the markets could rally strongly in September if the Fed holds rates, revising his earlier call for a pullback. He also declares the 'crypto winter' over, expecting significant institutional allocation and a strong fourth quarter for digital assets, with Bitcoin potentially reaching six figures.
Model Analysis Breakdown
| Model | Sentiment | Confidence |
|---|---|---|
| Gemini 2.5 Flash | Bullish | 90% |
| Consensus | Bullish | 90% |