Tom Lee Says a “Face-Ripper” Rally May Be Starting

​According to Fundstrat’s Tom Lee, the market may be on the brink of a “face-ripper rally”—a sudden, sharp surge in stocks—after the S&P 500 clawed its way back from correction territory. Monday’s rebound left the index down just 6% from its February peak, and Lee says bullish momentum is building.

What’s Fueling the Optimism?
Lee points to a few key catalysts:
-Trump’s tariffs may be less severe than feared. Despite aggressive rhetoric, recent comments suggest many countries could receive exemptions, calming fears of a full-blown trade war.
-Signs of a “Trump Put”—a belief that the administration will pivot policy to support markets if they fall too hard or too fast.
-Volatility is collapsing, and the economic calendar is light, creating space for technical factors to drive markets higher.

Tesla’s Bounce as a Market Barometer
Lee singles out Tesla’s 12% surge as a signal of bullish strength. He says if Tesla can reclaim $330 in the near term, it could retest all-time highs, reinforcing a V-shaped recovery across the broader market.

He also notes increasing calls for Elon Musk to step back from politics and government advisory roles to refocus on Tesla—something that could further boost the stock’s sentiment and, by extension, the S&P 500.

Is This the Start of a Broader Recovery?
According to Bank of America strategists, the market’s recent behavior aligns with historical rebounds after corrections of 7.5% to 19.9%. Since March 13, the S&P 500 has rebounded 4.5%, and is just 1% away from recovering half of its recent drawdown—a level typically reached within 10 trading days.

Bottom Line
Tom Lee sees signs that the worst of the correction may be over, and that stocks could stage a sharp, fast rally in the coming days—especially if tariff fears continue to ease and key stocks like Tesla keep bouncing.

He calls it a potential “face-ripper rally.” Time will tell if that’s what we’re witnessing—or just another head fake in a jittery market.





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