Yahoo Finance
Fundstrat's Tom Lee says Wall Street overreacted to Wednesday's rate decision.He's calling the sharp stock selloff a buying opportunity, not a warning sign.
Cyclical stocks, financials, and energy names took the brunt of the selloff.
Lee expects those same groups to lead any rebound.
The Dow Jones Industrial Average fell 631 points, or 1.2%, to close at 51,461 on Wednesday.
The Nasdaq Composite held roughly flat at 25,978.
Retail sales for August also topped forecasts, easing some recession worries.
The selloff followed a move Lee had flagged days earlier.
It deepened once officials signaled more hikes ahead before year-end.
Financials and energy stocks led the decline as traders rotated out of rate-sensitive sectors.
Hunt sank 13.3% after warning of a sharp earnings decline.
Lee cited Goldman Sachs research pointing to fading inflation pressures over the next two quarters.
He argued that shift should let cyclicals, financials, and other rate-sensitive stocks rebound.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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