Wall Street is set for a big rebound rally Tuesday, but Tom Lee doesn't see new all-time highs on the horizon just yet. "I think there's a bounce underway" back toward 5,500, said the firm's head of research in a CNBC "Squawk Box" interview. "But I do think … the challenge is going to be, we don't have fundamental clarity and sort of the 'all clear' enough for us to say that's going to push us to new highs. So, we're kind of stuck in the near term." S & P 500 futures were up more than 2% on Tuesday, priming the benchmark index to claw back some of the steep declines seen in recent sessions. On Thursday and Friday, the S & P 500 fell a combined 10.5% — its biggest two-day decline since 2020. .SPX 5D mountain S & P 500 5-day chart Those moves came as investors dumped equities on escalating global trade tensions . The U.S. last week unveiled much steeper-than-expected tariffs on goods from other countries. President Donald Trump also threatened an additional 50% tariff on Chinese imports. China's Commerce Ministry said it will " fight to the end " as it retaliates against the U.S. "Markets are stretched to the downside," said Lee. "It's almost like the stock market and the economy were delivered a heart attack from the terms of those tariffs." "But I think markets overreacted to the downside, and yesterday, it does look like the messaging has shifted" to letting people know they're negotiating, he said. Indeed, Treasury Secretary Scott Bessent told CNBC on Tuesday that about 70 countries had reached out to the White House for tariff negotiations. Elsewhere Tuesday morning on Wall Street, AMD was downgraded by KeyBanc to sector weight from overweight. "While the stock is relatively inexpensive, trading at 13x our 2026 EPS estimate, semiconductor stocks rarely work with risk to [gross margins], which we are increasingly concerned about given the aggressive price cuts by INTC ," he added. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today's dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You'll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!