Tom Lee: Markets are overreacting to the Fed and I would be a dip buyer

• Tom Lee suggests the market is overreacting to the Fed's 25 bps hike and recommends buying the dip, expecting a 'big rally' as temporary inflation effects fade.
• Lee anticipates core PCE to drop to a '2' handle and expects cyclicals, tech, consumer discretionary, and financials to perform positively.
• Dan Greenhaus thought the Fed could have waited but agrees the hike won't derail the economy, noting that outside of data center build-out, the economy (especially construction) is not booming.

Fundstrat's Tom Lee and Solus' Dan Greenhaus discuss the Federal Reserve's 25 basis point rate hike. Lee believes the market is overreacting and advises buying the dip, anticipating a rally as inflation temporary effects fade. Greenhaus agrees the hike won't derail the economy but notes weakness in sectors outside of AI-driven investment.