Tom Lee says U.S. stocks can finish 2025 higher and crypto should rally into year-end after a sharp deleveraging, laying out his case during an interview Friday on CNBC’s “Closing Bell: Overtime.” Pressed by co-host Jon Fortt on whether the risk-on trade is back, Lee, who is the chairman of Bitmine Immersion Technologies (BMNR), as well as the head of research at Fundstrat Global Advisors and chief investment officer at Fundstrat Capital, noted he stayed bullish through the spring slump, reminding viewers ...

Group 1 - The Russell 2000 index, which includes 1,956 small-cap stocks, recently reached a record high, but there are concerns about its ability to maintain this momentum [1][2] - The total market capitalization of the Russell 2000 is approximately $3.43 trillion, which is less than major companies like Apple, Nvidia, and Microsoft [1] - Adjusted for inflation, the Russell 2000 is down 15% compared to its levels four years ago, indicating a lack of growth [2] Group 2 - The Russell 2000 has been a chronic underperformer compared to the S&P 500 since its inception in January 1984, challenging the notion that small-cap stocks generally outperform [3] - The index has shown poor relative performance, particularly when the broader market has been rising, suggesting that small-cap stocks may not be a necessary component of investment portfolios [4]

Group 1 - Major indexes reached new closing highs, with the Dow Jones Industrial Average increasing by 172 points, or 0.4%, the S&P 500 rising by 0.5%, and the Nasdaq Composite up by 0.7% [1] - Despite the overall gains in major indexes, a majority of S&P 500 stocks closed lower [1] Group 2 - The Russell 2000 index experienced a decline of 0.8% from its record close on Thursday [2]

Core Viewpoint - Small-cap stocks are considered undervalued compared to large-cap stocks, despite a recent rally in their prices [1] Group 1 - Portfolio managers highlight that small-cap stocks remain cheap relative to their large-cap counterparts [1]

Group 1 - The Russell 2000 index closed at a record high for the first time since 2021, increasing by 2.5% [1] - This marks the first closing high since November 8, 2021, and the index set its first intraday record since November 25, 2024 [1] - The record-breaking close ended a stretch of 967 trading days without a record, which is the second-longest streak on record and the longest since a 1,022 trading-day streak that ended in April 2004 [2]

Core Insights - Strategists have raised concerns about the outlook [1] Group 1 - The outlook has been deemed uncertain by strategists [1]

Core Insights - Since early August, the Russell 2000 has outperformed the S&P 500 [1] Group 1 - The Russell 2000 index, which represents small-cap stocks, has shown stronger performance compared to the large-cap S&P 500 index [1]

Market Overview - The market showed resilience despite uncertainties regarding trade policy, tariffs, and the Federal Reserve chair [6] - S&P 500 closed up about 01% [6] - Nasdaq was down about 04% due to weakness in big cap tech names [7] - Dow Jones Industrial Average added 04% [7] - Russell 2000 outperformed, with small caps gaining tailwind [7] Earnings and Performance Highlights - Homebuilders outperformed, with the S&P composite 1500 homebuilding index up about 10% [2] - D R Horton's stock was up about 16% after third-quarter earnings beat expectations [18] - PulteGroup's stock was up 12% after reporting better-than-expected earnings [19] - Texas Instruments' second-quarter EPS was $141, beating the consensus estimate of $135, but the stock was down about 7% in after-hours trading [10][12] - Intuitive Surgical's second-quarter revenue came in at $244 billion, and adjusted EPS beat estimates at $22 billion, with shares initially moving higher but later declining [20][29] - Capital One's second-quarter adjusted EPS was $548, far exceeding the consensus estimate of $388, with net revenue at $1249 billion [22][23] - Enphase Energy's second-quarter adjusted EPS beat estimates by $006, and revenue came in better than forecast at $3632 million, with the stock up about 8% in after-hours trading [26] Company Specifics - Texas Instruments invested $39 billion in R&D and CIGNA and invested $49 billion in CapEx and returned $67 billion to owners over the past 12 months [14] - Intuitive Surgical's Da Vinci surgical system installed base grew to 10488 systems as of June 2025, a 14% increase compared to June 30th, 2020 [30] - Capital One's loans held for investment were approximately $4393 billion [23]