Fundstrat Predicts S&P 500 Target of 7,300 as Sector Repricing Limits Pullback Depth

Summer pullbacks in the equity market will not be as deep because 70% of the S&P 500 has already endured a rolling bear market. Energy and financials were hit first, followed by the Magnificent 7 and software stocks. These key sectors have repriced and become cheaper. Fundstrat Head of Research Tom Lee maintains a 7,300 target for the S&P 500. He expects the Magnificent Seven and software names to catch a strong bid as oil cools and the yield curve flattens. This process will lead the S&P 500 to new record highs.