Fundstrat's Tom Lee sees the S&P 500 at 7,800 and says July's selloff was driven by one leveraged AI fund, while Jim Cramer urges buying Amazon on dips and cites quantum-computing risks for Bitcoin.
Wall Street bulls split their focus on Monday between a renewed call for a stock-market rebound and a fresh warning on Bitcoin. Tom Lee, Fundstrat head of research, said July's equity selloff was caused mainly by the collapse of a heavily leveraged artificial intelligence investment rather than weakening corporate earnings, and he expects August to mark a recovery month. He said the S&P 500 could reach 7,800 from around 7,605 on Monday and reiterated a broader view that 2027 could be one of the stock market's best years as profit forecasts have risen while share prices have lagged. Jim Cramer, meanwhile, told followers to buy Amazon on weakness after what he described as a strong quarter, with the company's cloud unit posting $42.23 billion in sales, up 37% year over year, and analysts lifting price targets as high as $400. Cramer also said he plans to sell all of his Bitcoin, not because of price action but because of quantum computers (advanced machines that may break encryption), citing comments from IBM boss Arvind Krishna that investors should be paranoid within three to four years. Bitcoin traded near $63,873, up 0.9% on the day, and the article notes Cramer made a similar exit call in December 2022, when Bitcoin was near $16,797 and has since risen about 259%. Friday's jobs report is presented as the next test of Lee's inflation view, while Cramer's record leaves his Bitcoin call under scrutiny.