Tom Lee: The valuation of the S&P 500 is becoming cheaper, and the Q3 earnings growth may approach 30%

Tom Lee, Chairman of the Ethereum treasury company BitMine, stated that although the market has been cautious recently, the fundamentals of the S&P 500 are improving, and the index valuation has actually declined. Fundstrat expects that the earnings growth rate of S&P 500 constituents in the third quarter may approach 30%, and the earnings per share (EPS) forecast for 2027 has been raised by more than 20% since the beginning of the year.

Tom Lee pointed out that the S&P 500 index's increase is lower than the upward adjustment of earnings expectations, which means that the market valuation multiple is actually declining. He also believes that high oil prices may strengthen the U.S. economy through energy exports, while the leading performance of technology stocks and the cryptocurrency market indicates that the market is betting on weaker inflation in the future.