Tom Lee, co-founder of Fundstrat, anticipates a volatile market in 2026, with a potential sharp decline followed by a rebound. In a CNBC interview, Lee suggested that a more dovish Federal Reserve policy could boost business confidence and elevate the ISM Purchasing Managers' Index above 50, benefiting sectors like industry and energy. Lee also highlighted the transformative impact of AI and blockchain on the financial sector, predicting that major banks such as JPMorgan Chase and Goldman Sachs could evolve into tech-like giants. Despite his optimism, Lee cautioned against market complacency, noting historical patterns of market performance following consecutive years of significant gains.