Fundstrat's Head of Research, Tom Lee, is warning investors that while Big Tech — including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and other Mag-7 companies — is out of the woods, a targeted "rolling bear market" is heading for other areas of Wall Street later this year.
A Fragmented Market Ahead While Lee expects the broader market to show resilience into year-end, driven by "unrelenting demand" for artificial intelligence (AI), he believes the gains will not be evenly distributed.
Clarifying his outlook on prominent tech equities on CNBC, Lee stated, "I think we've already had a bear market in Mag-7 and software." While those high-flying sectors are expected to remain safe, the same cannot be said for the broader market.
"I think there's going to be a bear market in other stocks later this year," Lee warned, pointing to headwinds that will squeeze companies that "got lofty." Read Also: Tom Lee Calls The End Of Crypto Winter Once Again, BitMine Chair Says Ethereum Performing As 'Wartime' Store Of Value Three Catalyst Threats According to Lee, the market is poised to confront three primary hurdles as the year progresses: typical midterm seasonal volatility, a looming supply overhang from upcoming tech IPO lockup expirations, and a critical energy crunch.
