Tom Lee breaks down why 'the war is actually helping earnings right now'

• The economy is doing better despite the war, with defense spending (potentially $30-60B/month) providing significant economic stimulus.
• The $20 rise in oil prices adds a manageable $12B/month to household burden, making the war's net impact positive for earnings.
• The market is resilient and has a history of bottoming early in conflicts, currently discounting a 'favorable outcome' for the war.
• Tom Lee's S&P 500 target is 7700 by year-end 2026, with overweight recommendations in Tech, Industrials, Financials, and Small-Caps.
• He emphasizes the global demand for energy, sovereign, and cyber security as key growth areas for stocks.

Tom Lee, Fundstrat head of research, maintains a bullish outlook on equities, arguing that the economy is performing better despite the ongoing war. He highlights defense spending as a significant stimulus that outweighs the burden of rising oil prices on households. Lee believes the market is resilient and is already discounting a favorable outcome for the conflict, with an S&P 500 target of 7700 by year-end 2026.