Tom Lee: Market has Become 'Desensitized' to Iran War, S&P 500 Could Hit 7,700

April 28 (Monday) — U.S. stocks extended their rally, with the S&P 500 closing up 0.12% at 7173.91 to notch another all-time high. Tom Lee, Fundstrat founder and widely known as the “Wall Street Oracle,” said the market has largely absorbed the impact of the Iran conflict—and he’s sticking to his 2024 S&P 500 target of 7700 points. In a CNBC interview, Lee cited the U.S. economy’s “amazing resilience,” noting the market has passed the latest round of geopolitical stress tests. Even amid ongoing Middle East tensions, he said investor sentiment has become significantly “desensitized.” Lee highlighted three core drivers fueling U.S. stocks now: - Strong corporate earnings: More than 89% of reporting companies have topped estimates; - AI-driven productivity gains starting to materialize; - Private credit market recovery outpacing expectations. Historical data, he added, shows U.S. stocks typically price in major geopolitical conflicts quickly early on and then gradually rebound. While tension in the Strait of Hormuz continues to push oil prices higher, the U.S. economy currently boasts strong inflation resilience. Lee’s forecast puts the S&P 500 with roughly 7% upside to hit his 7700-point target.