Strategist Tom Lee told CNBC on Monday he believes there could be a broad rally on Wall Street once the U.S. coronavirus case surge driven by the delta variant crests and offers investors clarity on the trajectory of the pandemic recovery. In an interview on "TechCheck," Lee noted that the model from the University of Washington's Institute for Health Metrics and Evaluation currently projects daily infections will top out later this week . "This is the biggest wave that we could see in the year and if it peaks, we're going to have an everything rally, a big one," said the co-founder of Fundstrat Global Advisors, who has become a closely watched strategist during the Covid crisis after issuing some timely market calls. Fundstrat's research team also has expanded into providing coronavirus data analysis in its client emails. Even though the Dow and S & P 500 ended Friday at record highs , Lee said investors are still juggling a variety of somewhat conflicting inputs, namely strong second-quarter earnings results combined with global uncertainty around Covid, vaccine rollout and its implications for the economic comeback. "There are so many things overhanging the outlook that I think investors would've been selling the news on Q2," Lee said. "Clients are so nervous about the delta variant that they're only going to believe it until they see it," Lee said, referring to a retrenchment in U.S. cases. However, he added, "I think if Covid is retreating in the U.S. and we don't have a fall wave, we're going to have a really big risk rally." He pointed to bitcoin 's recent performance, including a roughly 5% pop Monday that brought the cryptocurrency to its highest levels since mid-May, as "strong evidence of this everything rally." Watch the full interview with Fundstrat's Tom Lee above.
Tom Lee, Fundstrat Global Advisors
Scott Mlyn | CNBC
Strategist Tom Lee told CNBC on Monday he believes there could be a broad rally on Wall Street once the U.S. coronavirus case surge driven by the delta variant crests and offers investors clarity on the trajectory of the pandemic recovery.