Tom Lee says the ‘face-ripping’ rally he predicted is merely delayed

Tom Lee says the ‘face-ripping’ rally he predicted is merely delayed Tom Lee says the ‘face-ripping’ rally he predicted is merely delayed Fundstrat's Tom Lee says the stock market is now poised to gain on incrementally dovish news. Tom Lee, head of research at Fundstrat, put a characteristically positive spin on the Federal Reserve’s interest-rate decision. In a video interspliced with references to “Game of Thrones” and “The Simpsons,” Lee said that the “face-ripping” rally he previously predicted may come, but just with a delay.

He said the Federal Open Market Committee’s statement and Kevin Warsh’s ensuing press conference was “peak hawkish Fed.” But, Lee added, there are incrementally dovish data points ahead, like the new methodology for the core personal consumption expenditures price index due at the end of the month that could reduce the year-on-year change by 0.4 percentage points. He said that other Fed speakers may walk back some of Warsh’s hawkish tone. Don’t Short Yourself offers weekly money tips to help you earn it, stack it and grow it.

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Lee also pointed to the technical picture, noting a “waterfall”-like decline but rising relative strength index readings. The last time that happened, in August, stocks rallied higher. were higher on Thursday following three consecutive losses for the S&P 500 Copyright ©2026 MarketWatch, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8 Steven Goldstein is based in London and responsible for MarketWatch's coverage of financial markets in Europe, with a particular focus on global macro and commodities.

Previously, he was Washington bureau chief, directing MarketWatch's economic, political and regulatory coverage. Follow Steve on Twitter: @MKTWgoldstein. Intel’s stock rises as investors hope memory chips can mark the next step in its turnaround As Fed rolls out its first interest-rate hike in 3 years, market braces for more increases Generac’s stock soars more than 30% after Amazon deal cements company’s status as an AI power player Fed rate hike fails to calm troubled markets as Dow falls 600 points.

Expect more sharp swings in stocks and bonds. Intraday Data provided by FACTSET and subject to terms of use. Historical and current end-of-day data provided by FACTSET.