Tom Lee: The US stock market is expected to strengthen in July, and the S&P 500 may rise to 8,000 points within the year.

BlockBeats news, on July 6, Tom Lee, Chairman of BitMine, the largest Ethereum treasury, said in an interview with CNBC that U.S. stocks are expected to perform stronger in July because market valuations are more reasonable than before and investor sentiment has not reached an overly bullish level. July will enter the second quarter earnings season, and corporate earnings in the first quarter were significantly better than expected. Currently, the market's P/E ratio is about 1.1 percentage points lower than in January. He expects second-quarter earnings to exceed expectations again, further lowering market valuations and leaving room for P/E expansion. Therefore, he believes July will be a stronger month for stocks.

Regarding whether the S&P 500 can reach 8,000 points within the year, Tom Lee said this target is achievable. He stated that 8,000 points roughly corresponds to earnings per share of $400 in 2026, with a P/E ratio of about 20 times. He believes this earnings expectation is low, and the P/E multiple could reach 22 times or higher, implying upside potential to 8,400 to 8,800 points by the end of the year.

However, Tom Lee also noted that between now and the end of the year, the market could experience a correction that "feels like a bear market," potentially occurring between August and October, rather than in July. Many fund managers have underperformed their benchmarks this year, with only 23% beating the large-cap growth stock index, the lowest level in nearly five years. Therefore, there may be significant demand for buying the dip in July. Tom Lee added that the decline from February to April this year was only about 7%, but it already felt like a bear market to some. Later this year, factors such as the new Federal Reserve framework and the gradual unlocking of SpaceX stock could test the market.