AI Stocks Lead Market Selloff, but Sevens Report Says “Nothing’s Gone Wrong”

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AI Stocks Lead Market Selloff, but Sevens Report Says “Nothing’s Gone Wrong”

Is the entire AI-driven rally suddenly at stake?

The Nasdaq suffered its worst week since April, falling 3% as mega-cap tech and AI-linked names led the decline. But according to Sevens Report Research, “nothing new” has gone wrong with the AI story.

The firm said the pullback reflects investors confronting “the tectonic gap between the amount of money being spent to build out AI capacity…and the paltry amount of revenue that AI is generating.”

That concern was highlighted when Apple reportedly agreed to pay Google only $1 billion to use its Gemini model in an AI-powered Siri — far less than AI bulls had hoped. “It reinforces the view that AI [is] not really being ‘worth’ that much to the end user,” Sevens noted.

Other developments, including Oracle’s heavy AI infrastructure spending and Meta’s post-earnings drop, fueled additional worries.

Still, Sevens emphasized that “nothing has occurred that makes us think the entire AI-driven rally is suddenly at stake.” The firm called the recent weakness a “sobering moment” rather than the start of a collapse, adding that without AI enthusiasm and capital spending, both the market rally and U.S. economic growth “would be much, much smaller.”

Also, click here to view the full article published in Investing.com on November 10th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

November Market Multiple Table

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What’s in Today’s Report:

  • Market Multiple Table – November Update

Futures are moderately lower with big tech underperforming after yesterday’s largest one day gain in months as traders assess the prospects of the government reopening.

Economically, the German ZEW Survey’s Current Conditions rose to -78.7 vs. (E) -78.0 and the U.K. Unemployment Rate rose to 5.0% vs. (E) 4.9%. Domestically, the NFIB Small Business Optimism Index fell to 98.2 vs. (E) 98.3.

Looking ahead to today’s session, investors are likely going to be focused on Washington and the next steps in the process for the federal government to reopen in the days ahead however there is also one (new) economic report due out ahead of the bell: The ADP Weekly Employment Change (8:15 a.m. ET) and one Fed officials scheduled to speak: Barr (10:25 a.m. ET).

With just two noteworthy earnings releases due out today: SE ($0.75) and OKLO ($-0.13) it is likely to be a mostly quiet session as traders await clarity on the status of the government reopening process with the potential for a modest pullback after yesterday’s big rally.

 

S&P 500 Nears Key 50-Day Moving Average After Global Selloff

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Tom Essaye of Sevens Report flags 6,665 as the next critical support level.

As the stock market wobbles, this is the key level to watch for the S&P 500

U.S. stocks remained under pressure in premarket trading Friday as global markets sold off across Europe and Asia. With investors questioning how much further the market could fall, Sevens Report Research founder Tom Essaye pointed to the S&P 500’s 50-day moving average — currently at 6,665.75 — as the next key level to watch.

The index closed at 6,720.32 on Thursday, according to FactSet data. Notably, the S&P 500 hasn’t closed below its 50-day moving average in 132 trading sessions — the longest such streak since February 2007, Dow Jones Market Data reported.

Also, click here to view the full article published in MarketWatch on November 7th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Bearish Bitcoin Forecasts Flag $70K as Key Support Level

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Analysts warn of a potential drop to $55K–$57K in a severe macro downturn.

Bitcoin (BTC) Price Prediction 2025 2026 2027 – 2030

The most cautious credible forecasts see Bitcoin falling to the $70K–$75K range if key support fails, with a worst-case scenario targeting $55K–$57K during a major macro sell-off. Analysts including Tyler Richey of Sevens Report and 10X Research identify these zones as critical downside markers. Veteran trader Peter Brandt assigns about a 25% chance to such a pullback but notes that a sharp correction could ultimately lay the groundwork for a stronger bullish recovery.

Also, click here to view the full article on Troymedia.com published on November 10th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

S&P 500 Nears Key Technical Level as AI Doubts Pressure Stocks

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Sevens Report’s Tyler Richey says a drop below 6,665 could mark “technical cracks” as AI optimism fades.

Stocks Face ‘Critical Tipping Point’ as Key Thresholds Tested

Doubts about whether billions poured into artificial intelligence will deliver returns — coupled with high stock valuations — sent the S&P 500 Index down to 6,720.32 on Thursday, its lowest level in two weeks. The 50-day moving average at 6,665 is emerging as a crucial support zone, according to Tyler Richey, technical analyst and editor of the Sevens Report. A break below that level could signal “technical cracks,” while a rebound above the 21-day moving average of 6,748.10 would likely restore risk-on momentum, Richey noted.

With government data stalled amid the shutdown and earnings season winding down, traders are leaning more heavily on chart patterns for clues. The S&P 500 has now logged three declines of at least 0.99% in the past six sessions and is down 2.5% from its last record as the Cboe Volatility Index climbs toward 20.

Also, click here to view the full Bloomberg article featured on Yahoo Finance published on Novemer 7th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Is Something Wrong with AI Enthusiasm?

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What’s in Today’s Report:

  • Is Something Wrong with AI Enthusiasm?
  • Weekly Market Preview: Can Earnings Help the Tech/AI Stocks Stabilize?
  • Weekly Economic Cheat Sheet: What Will Delayed Data Tell Us (Growth Stable, or Not?)

Futures are moderately higher as the Senate voted to, effectively, end the government shutdown later this week.

The Senate passed an important procedural vote late Sunday night that paved the way for the government to reopen later this week, ending the longest shutdown in U.S. history and removing an increasing economic headwind.

There were no notable economic reports overnight.

There are no economic reports today so focus will be on Fed speak (Daly at 8:30 a.m. ET), and earnings, as AI darling CRWV ($-0.39) reports after the close (and the stronger the report, the better for tech and the market).

Tesla’s Elon Musk Could Become World’s First Trillionaire After Shareholder Vote

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Tesla’s Elon Musk Could Become World’s First Trillionaire After Shareholder Vote

Musk set to become world’s first trillionaire

Speaking to ABC’s The World Today, Tom Essaye, founder of Sevens Report Research, defended the approval, saying investors should “write the check” and let Musk “do his thing.” Essaye argued that Musk’s track record justifies the compensation, as his vision has consistently driven Tesla’s growth and investor returns despite skepticism from critics.

“Shareholders should write the check and let Musk do his thing.
His vision has created immense value — and that’s what they’re paying for.”
— Tom Essaye, Sevens Report Research, via ABC’s The World Today

Also, click here to view the full article on Troymedia.com published on November 6th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Important Technical Levels to Watch

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What’s in Today’s Report:

  • Important Technical Levels to Watch

Futures are modestly lower mostly on momentum from Thursday’s declines and after hopes for the government to reopen today faded overnight.

There were hopes late Thursday that the government could reopen today and there may be a vote in the Senate, although passage is not expected at this time.

Economically, Chinese exports fell –1.1% vs. (E) 2.9%.

Focus today will be on inflation expectations via the one-year and five-year inflation expectations in the University of Michigan Consumer Sentiment survey and the NY Fed 1-Year Consumer Inflation Expectations (E: 3.4%).  Put simply, the lower these numbers, the better as they will make a December rate cut incrementally more likely.

On the Fed front, there are two speakers today, Jefferson (7:00 a.m. ET) and Miran (3:00 p.m. ET) although they shouldn’t move markets.

 

New Sevens Report Special Report Coming Next Wednesday: How Bad Is the U.S. Debt Situation?

Interest on our next special Report, “How Bad Is the U.S. Debt Situation?” has been high and we are looking forward to its release on Wednesday.

With the SCOTUS IEEPA tariff decision looming, U.S. fiscal problems could be thrust back to the forefront of the markets  and this special report can not only help explain the situation and put it in proper context, but also differentiate you from the competition by showing you’re focused on both the near-term and long-term risks to clients’ wealth.

Like previous Sevens Report Special Reports, this report will both be branded as Sevens Report Research and as a “white labeled” version, allowing you to brand this robust and in-depth report as your own using your firm’s logo and other marketing materials. Both versions are included with a purchase.

 

Tom Essaye Interviewed: Stock Market Is Making the Economy Look Better Than It Is

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Essaye warns that market resilience masks underlying economic softness heading into 2026.

The stock market is making the economy ‘look better’ than it is

Sevens Report Research founder, Tom Essaye, joins Opening Bid host Brian Sozzi to discuss the resilience of the stock market and what to keep an eye on heading into 2026.

Also, click here to view the full interview on Yahoo Finance published on November 4th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

AI Stocks Face Caution as Broader Market Slips, Says Essaye

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Tom Essaye notes recent weakness outside AI but calls the selling “knee-jerk,” not the start of a larger downturn.

Review & Preview: Tech Check

“Essentially the rest of the stock market has been going down for over a week now and the only thing that’s been holding the S&P 500 up are the AI names,” Sevens Report Research’s Tom Essaye told me. “And now we have a very direct series of headlines of caution…on the increases in the AI-related stock prices.”

Still, this might simply be “knee-jerk selling,” according to Essaye.

“I don’t think that this is the start of something much bigger,” Essaye says. “The market seems absolutely fine, still embracing a lot of these AI-related headlines, but I do think that we’re going to get these temporary moments of caution because the whole debate ‘Is AI a bubble or not?’ it’s still incredibly unsettled.”

Also, click here to view the full article published in Barron’s on November 4th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.