BlockBeats news, on May 27, Fundstrat's Head of Research, Tom Lee, stated that although the "Big Seven" tech stocks have recovered from their decline, overall market risk has not been eliminated, and other sectors may gradually enter a "rolling bear market" toward the end of 2026.
He believes that demand for AI remains strong and will support the resilience of major indices through the end of the year, but market internal divergence will intensify. In an interview with CNBC, he stated, "The bear market for the Magnificent Seven and the software sector is over," but emphasized that this does not represent the broader market.
Lee highlighted three potential sources of disruption: midterm election cycle volatility, selling pressure following the expiration of lock-up periods for tech company IPOs, and energy supply constraints. Among these, he identified energy as the most direct risk, warning that "a reckoning is coming: inventories of petroleum products are insufficient and cannot be alleviated in the short term," putting pressure on energy-dependent businesses.
He remains bullish on the core pillars of the U.S. economy—energy independence and AI-driven productivity gains—and advises investors to focus on sectors with strong profit certainty, stating that "the real strength lies with companies that control scarce resources." He noted signs of overheating in the semiconductor sector, but short-term capital momentum still favors AI suppliers and tech leaders, while other industries may gradually enter a correction phase.