Fundstrat's Tom Lee isn't ruling out the possibility that equities will rally into year-end, even after a tough few weeks for the stock market. The major indexes were down Thursday, a day after selling off following the Federal Reserve's latest rate hike. The central bank increased rates by 75 basis points in an effort to tame inflation. Policymakers also indicated those hikes will continue until the federal funds level hits 4.6% in 2023. While the market has been trying to discount the Fed's hawkish attempts to contain inflation, Lee said he still thinks stocks can do "pretty well into year end." Lee's current year-end price target on the S & P 500 is 4,800, which implies nearly 27% upside from Wednesday's close. "If inflation starts to improve sharply, which a lot of leading indicators show that, I think markets are going to start to look at the Fed's current path as sufficient to actually contain inflation," Lee, managing partner at Fundstrat, said on CNBC's " Tech Check ." "That is going to allow risk assets to rally," he said. Meanwhile, tech companies, which have been beaten up this year, got cautious early this year. Therefore, they have a lot of room to cut costs if they need to, said Lee, a CNBC contributor. "We may be surprised by the profit margin expansion of tech companies, even in a tougher revenue environment. That means there could be earnings surprises on tech," he said.