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      Tom Lee Predicts Major Stock Rally in Q4 Amid Uncertain Crypto Market

      Tom Lee, co-founder of Fundstrat Global Advisors, has forecasted a significant stock market rally for the fourth quarter of 2026, suggesting it could be one of the largest in recent history. His comments, made during a television appearance on September 15, came shortly before the U.S. Federal Reserve raised interest rates, which may complicate the conditions for such a rally. Lee anticipates that once the Fed's monetary policy becomes clearer, a substantial amount of cash currently held in money-market funds could flow back into riskier assets, including stocks and potentially cryptocurrencies.

      Despite Lee's optimistic outlook for the stock market, the relationship between stock performance and cryptocurrency prices has weakened. Bitcoin, Ethereum, and XRP face substantial challenges in reaching new highs, with Bitcoin needing to gain approximately 53% to reclaim its previous peak of $116,484, while XRP would require a more than 130% increase from its current price of $1.30 to surpass $3.00. This divergence raises questions about whether a stock market rally will translate into gains for cryptocurrencies, especially as Bitcoin's correlation with technology stocks has diminished and its relationship with gold has strengthened.

      In contrast to Lee's bullish sentiment, economist Ed Yardeni has revised his year-end target for the S&P 500 downward, citing increased risks of a downturn due to rising energy prices and persistent Treasury yields. This skepticism reflects broader concerns in the market, particularly as the 10-year Treasury yield reached its highest level in a year. The uncertainty surrounding interest rates and economic conditions may pose additional hurdles for cryptocurrencies, which are already struggling to regain their previous highs.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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