At Extreme Investor Network, we bring you the latest insights and expert analysis on all things finance to help you make informed investment decisions. Today, we have some exciting news from Fundstrat’s Tom Lee that could impact your investment strategy.
According to Tom Lee, investors should consider buying stocks before the release of the May jobs report next week. The recent dip in the S&P 500, Nasdaq 100, and Dow Jones Industrial Average presents a buying opportunity, with stocks down 3%, 4%, and 5% from their recent record highs, respectively.
The release of the April Core PCE data, which showed cooling inflation in line with economist estimates, has been a positive sign for stock prices. Lee believes that this trend of disinflation will continue, potentially leading to Fed interest rate cuts later this year and supporting higher stock prices.
Looking at historical data, Lee found that stocks generally performed well following releases of the monthly Core PCE reports, especially when stocks were down 1% in the five days before the release. In fact, of the four PCE reports since the end of 2022 that included stocks falling 1% heading into the report, stocks were higher every time a week after the release by an average of 2.3%.
With the May jobs report on the horizon, economists are expecting to see 175,000 jobs added to the economy with an unemployment rate of 3.9%. A report in line with these estimates could put pressure on the Fed to cut interest rates sooner rather than later.
Don’t miss out on this potential buying opportunity in the stock market ahead of the May jobs report. Stay tuned for more updates and expert insights on Extreme Investor Network to help you navigate the ever-changing financial landscape.