Former jpmorgan chief stock strategist and Fundstrat Capital chief investment officer Tom Lee predicted on Monday that the s&p 500 index will rise to 6300 points by the end of the year, citing favorable market conditions and historical patterns indicating that stocks will continue to strengthen in December.

Lee emphasized historical precedents, stating, "During the first half of an election year, when the market rises by over 10%, there is a 100% chance of an increase in December." He noted that the 10-year u.s. Treasury yield has fallen to 4.1%, creating favorable conditions for multiple expansions.

Lee's optimistic views extend to the cryptocurrency market, predicting that bitcoin will exceed $0.1 million by the end of the year and could reach $0.25 million by the end of 2025. His forecast for cryptos aligns with recent market momentum, despite recent volatility, as bitcoin's trading price remains around $96,000.

The strategist's target for the s&p 500 index falls between competing forecasts on Wall Street. Bank of America Securities recently predicted that the index will reach 6666 points by the end of 2025, a 10% increase from current levels. The s&p 500 index closed at 6047.15 points on Monday, indicating sustained momentum in the large cap market.

Lee addressed concerns regarding tariffs proposed by the Trump administration, stating that tariffs could serve as effective negotiation tools without severely harming corporate profits.

He said, "Overall, I don't believe the Federal Reserve will implement policies that harm corporate profits, so the ultimate outcome might be favorable for corporations."

"The goal of the Federal Reserve is to lower the capital costs for homeowners, mortgages, and small businesses," Lee explained. He clarified that despite market concerns about potential economic weakness, lower yields could be beneficial for the overall economy.