Sevens Report: Powell’s Hawkish Tone “Not Bearish” for Stocks
Tom Essaye says AI enthusiasm and trade stability outweigh Fed uncertainty.
Powell’s warning won’t derail the stock-market rally, maintains this strategist.
The Sevens Report, authored by former NYSE trader Tom Essaye, dismissed the idea that Jerome Powell’s hawkish comments Wednesday are bearish for equities. Powell’s remark that a December Fed cut is “not a foregone conclusion” sharply lowered market odds of a 25-basis-point cut—from over 90% to near 55%, which Essaye called “a coin flip.” Still, the report argues the bull case for stocks remains intact. Essaye cites four reasons: the Fed could still ease, Powell didn’t signal the end of rate cuts, AI optimism remains strong, and U.S.-China trade stability has improved. Essaye emphasized AI as the dominant driver, noting Powell’s remarks “don’t reduce the tailwind on risk assets.”
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