Tom Lee says the worst is over for ‘epicenter’ stocks, small caps, but warns on tech

Tom Lee, Fundstrat Global Advisors
Scott Mlyn | CNBC

Fundstrat co-founder Tom Lee said that so-called epicenter stocks and small caps have reached a bottom, but more pain may be ahead for the tech sector.

Epicenter stocks are those that were hit hardest by the pandemic, including airlines, hotels and consumer discretionary companies like restaurants and retailers. The small-cap Russell 2000 was down 4.4% so far this week.

Lee said the Centers for Disease Control and Prevention's announcement Thursday that fully vaccinated Americans no longer need masks in most situations is an important step toward returning to normalcy.

More In Pro Insight

CNBC ProThis is a 'textbook' bear market bounce that will fail, Bank of America says
CNBC Pro‘Don’t be a hero’: Investment pro reveals how to navigate the market, names the tech stocks she’s buying
watch now
CNBC ProCNBC in 5 minutes: All the buy, sell and hold stock calls from Thursday