Wall Street bull Tom Lee’s prediction came true: the stock market rebounded strongly after the Federal Reserve’s interest rate decision
Early Thursday morning, the Federal Reserve announced its March interest rate decision, keeping the interest rate range between 5.25% and 5.50%. The Federal Open Market Committee (FOMC) also raised its economic and core inflation forecasts for the year, with expectations of three interest rate cuts still in play.
Following the announcement, U.S. stocks saw a rapid rise, with all three major indexes hitting record closing highs. The Dow Jones rose by 401.37 points, the Nasdaq by 202.62 points, and the S&P 500 by 46.11 points.
Wall Street bull Tom Lee of Fundstrat had predicted this stock market rebound ahead of the Fed’s announcement. Lee, known for his accurate predictions, pointed to five reasons for the market rebound, including investor relief and surprise post-FOMC meetings, pricing in of fewer expected rate cuts, changing interest rates, Chairman Jerome Powell’s dovish stance, and institutional investor skepticism.
Overall, Lee’s optimism for the stock market in 2023 seems to be holding strong, as his predictions continue to ring true. Investors may want to take heed of Lee’s advice to focus on trades in artificial intelligence, Ozempic-related stocks, financial and industrial sectors, Bitcoin and concept stocks, and small-cap stocks. With the stock market rebounding after the Fed’s decision, it seems like Tom Lee’s bullish outlook is paying off.