Tom Lee has projected that the S&P 500 will climb to 7,700 by 2026, marking an 11.8% increase. His forecast is based on factors such as the 'wall of worry' effect, growth in AI-driven technology, and potential easing by the Federal Reserve. The fear and greed index remains a crucial indicator of market sentiment. In 2025, the S&P 500 experienced a 17% rise, with technology and communication services sectors seeing gains of 27% and 33%, respectively. Lee remains optimistic about the prospects for technology, AI, altcoins, materials, energy, and financials in 2026. This year, financials have risen by 11.2%, while materials and energy sectors have underperformed.