Stock Market Hits Record High in April 2026 — Tom Lee Says the Best Is Still to Come

TLDR

• The S&P 500 closed at 7,022.95 on April 15, surpassing its January 28 record, while the Nasdaq hit a new all-time high at 24,016
• Tom Lee argues the market is handling rising oil prices better than other countries, with oil above $100/barrel after the Hormuz Strait closure
• Defense spending of ~$30 billion/month is boosting corporate profits and supporting the economy despite the US-Iran conflict
• Lee says the inflation impact from oil prices may be less severe than feared, based on historical data
• Institutional investors sitting on cash are now being forced into the market, creating buying pressure — Lee maintains his S&P 500 target of 7,300

The S&P 500 and Nasdaq both reached new all-time highs this week, erasing losses tied to the US-Iran conflict that had rattled markets since January. The S&P 500 closed at 7,022.95 on April 15, topping its previous record set on January 28. The Nasdaq closed at 24,016, also a new record.

Tom Lee, founder of Fundstrat, appeared on CNBC’s Closing Bell to explain why he believes the market is now in better shape than it was at those earlier peaks. He laid out three specific reasons.

His first point was about oil prices. Oil surged above $100 per barrel following the closure of the Hormuz Strait. Lee acknowledged this was a headwind but argued the US economy was handling it better than most.

Oil prices did pull back somewhat after initial gains, as markets factored in hopes of a de-escalation between the US and Iran.

Corporate Profits Holding Up

Lee’s second reason focused on earnings. He said corporate profits have remained strong since the conflict began, which he sees as evidence the war has so far stimulated rather than damaged the US economy.

Defense spending is a key part of that equation. Lee noted the US is spending roughly $30 billion per month on defense, with potential to double to $60 billion. That spending is flowing directly into the economy.

He compared that to the oil price burden, which he estimated costs US households about $12 billion per month collectively — a net positive for the economy overall, in his view.

Tech companies have posted solid results in the first quarter of 2026, beating analyst expectations in several cases. That has helped justify current valuations on the Nasdaq.

Inflation May Be Less of a Problem

Lee’s third argument addressed inflation fears. Many analysts have warned that $100+ oil will feed into broader price increases. Lee pushed back on that view.

Institutional Money Moving In

During the weeks of market decline, many institutional investors stayed on the sidelines and built up cash. With indices now at new highs, those investors face pressure to deploy that capital or risk falling behind their benchmarks.

Lee maintained his S&P 500 year-end target of 7,300, which would represent roughly 4% upside from current levels.

Bitcoin and other crypto assets have historically moved in line with tech stocks during periods of broad risk appetite, and onchain data has shown renewed inflows into institutional Bitcoin products in recent weeks.

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