Magnificent Seven Bear Market Over, But Other Sectors Face Rolling Downturns: Tom Lee

According to Fundstrat's Tom Lee, on May 27, the bear markets for the Magnificent Seven tech stocks and software have ended, but the broader market risks remain unresolved. In a CNBC interview, Lee warned that other sectors may face rolling bear markets later in 2026 as market divergence intensifies. He cited three potential risk factors: mid-election cycle volatility, post-IPO lockup expiration selling pressure, and energy supply tightness. Lee identified energy as the most direct risk, noting that oil inventory shortages lack near-term relief, pressuring energy-dependent companies.
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