Bond yields likely bottomed, these hard-hit stocks to rally

Strategist Tom Lee told CNBC on Friday he believes Wall Street’s concern over slowing economic growth has likely reached its apex already, setting the stage for so-called epicenter stocks to rally in the coming weeks.

Lee’s comments on “Halftime Report” came one day after the yield on the benchmark 10-year Treasury note fell as low as 1.25%. The 10-year yield, which moves inversely to price, stood around 1.356% Friday afternoon.

“Now we’ve had, I think, a growth scare that really peaked yesterday. I think the headline might have been the Tokyo Olympics,” the co-founder of Fundstrat Global Advisors said, referring to organizers’ decision to ban all spectators at the summer games after Japan declared a state of emergency due to coronavirus concerns. That spooked investors and played a role in the 10-year yield hitting a level it had not seen since February, he said.