The stock market has staged a major rebound in April. The S&P 500 and Nasdaq hit fresh all-time highs this week, erasing all losses from the US-Iran conflict.
BitMine Chairman Tom Lee believes the US stock market is now in a better position than when it hit its previous all-time high earlier this year. He outlined three reasons for his stance during an appearance on CNBC’s Closing Bell.
According to market data, the S&P 500 closed at 7,022.95 on April 15, surpassing its previous record from January 28. The Nasdaq finished at 24,016, marking a new record high.
This recovery came after the S&P had fallen as much as 9% from its January peak amid the war’s rattling of global markets. Now, both indices have turned positive for the year after notable losses in March.
Lee pointed to the resilience as evidence that US equities can absorb oil price surges that are crippling other economies. Oil spiked above $100 per barrel after the Strait of Hormuz was blockaded.
However, prices have since retreated as markets have grown cautiously optimistic about a de-escalation in tensions between the United States and Iran.
“I know this is going to sound counter to what other the viewers might think but I think the stock market is in a better position today than earlier this year when it made its all-time high because one, we’re now seeing that the US stock market can handle a surge in oil while it hurts other countries,” Lee stated.
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His second point focused on corporate earnings. Lee said earnings have risen since the conflict began, which gives the market confidence that the war is actually stimulating the US economy rather than dragging it down.
