That Will Cause Some Upset For Markets Tom Essaye Tells Barron’s

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For something that has been working really well for markets, that will cause some upset, Tom Essaye tells Barron’s.

S&P 500 Drops 1.2% After Warsh Hints of Fed Changes

Sevens Report Research’s Tom Essaye told Barron’s the market reacted to the “litany of changes that Warsh is proposing” that could lead to uncertainty and less communication from the central bank.

“The Fed was not hawkish, nor was Warsh hawkish,” Essaye says. “What he said was that ‘I’m exploring changing everything. And for something that has been working really well for markets, that will cause some upset.”

Also, click here to view the full article published in Barron’s on June 17th, 2026. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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Tom Essaye Says Cheap AI Stock Valuations Could Signal This

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Tom Essaye said that cheap AI stock valuations could signal that investors are growing fearful that the data center boom could come to a halt.

‘Exactly how the dot-com bubble burst’: A market research firm says keep an eye on this AI warning sign

Tom Essaye, the founder of Sevens Report Research, said in a note on Wednesday that cheap AI stock valuations could signal that investors are growing fearful that the data center boom could come to a halt.

Typically, investors are willing to assign higher valuations to growth stocks because of their high future earnings potential. So the fact that some AI stock valuations are so low today means investors are skeptical that earnings potential will ever come to fruition, Essaye said.

“Think of it this way: GOOGL (to use one as an example) cancels building 10 data centers because it’s going to cost too much money and the return isn’t there,” he wrote. “That will result in massive order cancellations at NVDA, MU, AVGO, SNDK, etc., because no one needs the chips, networking, memory, or processor power,” he added.

A recent example of investor uneasiness, Essaye said, is the recent decline in Oracle stock. Shares of the company have tumbled about 25% since June 1 as it’s poured money into the AI buildout.

“To be fair, this fear has been around for several months, and it isn’t appearing yet. However, it’s not without precedent because this is exactly how the dotcom bubble burst,” he said.

“While people connected to the internet, their connection wasn’t nearly as profitable as quickly as everyone assumed,” Essaye continued. “Because of that, the buildout stopped.”

Also, click here to view the full article published in Business Insider on June 19th, 2026. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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Tom Essaye Has Raised Caution For Investors

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Market research company warn of AI stocks selling cheap; say they point to a ‘dangerous sign’

Market research company, Sevens Report Research founder Tom Essaye has raised caution for investors that the relatively cheap valuations of several high-flying AI stocks may not be the buying opportunity they appear to be. According to a report by Business Insider, in a note, Eassye said that the low forward price-to-earnings (PE) ratios could reflect the growing fears that the data center boom may stall. For comparison, the S&P 500 trades at a forward PE of 21.5. Essaye noted that growth stocks typically command higher multiples because of their future earnings potential. The fact that AI stocks are trading at relatively low valuations suggests skepticism about whether those earnings will materialize.

Essaye further warned that if AI adoption falls short, companies could cancel large-scale data center projects, leading to “massive order cancellations” for chipmakers and hardware suppliers. He cited Google as an example: “If GOOGL cancels building 10 data centers because the return isn’t there, that will result in massive order cancellations at NVDA, MU, AVGO, SNDK, etc.”

Also, click here to view the full article on MSN.com published on June 22nd, 2026. 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.

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Tom Essaye Notes That The Sustainability Worries Are Still Valid

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Practically, I don’t think this means anyone needs to reduce tech exposure today, Tom Essaye tells Barron’s.

Tech Stocks Are Cheap? That’s a Problem Too.

Essaye notes that the sustainability worries are still valid, highlighted by Oracle’s recent report.

“Using simple math, it appears that Oracle will have a close to 100% sales/capex ratio in 2027,” writes Essaye. “To keep things simple, that means Oracle will spend all of its revenue on capex, the vast majority of which will go into AI infrastructure. That means that Oracle will almost certainly have negative free cash flow and that is only sustainable for so long, even for a company like Oracle.”

Here is where the dot-com bubble comes back into play, Essaye notes, because the current AI buildout could wind up being similar to the widespread effort to build fiber access to the internet to homes across the country in the late 1990s. That demand turned out to be unsustainable, as connecting people to the internet wasn’t as profitable as initially hoped.

“Practically, I don’t think this means anyone needs to reduce tech exposure today,” Essaye concludes. “But this situation (i.e., are earnings gains sustainable?) is something that needs to be watched, so ensuring one isn’t too overweight tech and has proper balance remains important.”

Also, click here to view the full article published in Barron’s on June 17th, 2026. 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.

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How The World Cup Can Deliver Short-Term Outperformance

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Goal! These 9 ETFs Are a Way to Invest in World Cup Fever

Tom Essaye, author of The Sevens Report market newsletter, noted on Thursday that the World Cup “could potentially deliver short-term outperformance” for the economies of the host nations of the U.S., Canada and Mexico.

The iShares MSCI Mexico ETF and iShares MSCI Canada ETF could be good bets on a macro lift for these host countries, Essaye said. Essaye also noted that stocks based in the countries of World Cup winners may be a winning trade too.

Essaye added that there could be “ripple effects on particular corners of the stock market.” Essaye pointed to the Roundhill Sports Betting & iGaming ETF, which owns DraftKings and Flutter as top 10 holdings as well as several casino companies. 

Also, click here to view the full article published in Barron’s on June 11th, 2026. 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.

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Tom Essaye Quoted in The Money Show

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Currency Roundup: Watch the Dollar and Yen if You’re Trading FX

The US dollar rose to a multi-month high in overnight trade Monday amid negative geopolitical headlines. But ultimately the greenback paired gains and ended slightly lower as risk-on money flows returned with dip buyers at work in the equity market. The Dollar Index ended down 0.08%, notes Tom Essaye, president of the Sevens Report.

The yen edged up 0.09%, a modest move that proved to be one of the larger fluctuations of the day in the foreign exchange space. Japanese GDP was revised up and the yen was close to the “currency intervention threshold” of 160 – where the government stepped in to defend the yen in recent weeks – scaring shorts out of the market.

In Europe, the euro rose 0.07% as traders fully priced in a rate hike from the ECB on Thursday. The pound was flat as traders digest mixed economic data with no BOE meeting to position into this week.

Looking elsewhere, the Aussie dollar edged up incrementally amid risk-on money flows and the Canadian loonie fell slightly despite firming oil prices. The sharp reversal in WTI and Brent from early session highs tamped down optimism for the nation’s largest export while currency traders digested news that the Canadian economy fell into a “technical recession” in Q1.

Bottom line: It was a quiet day in forex to start the week. But with several central bank decisions due later in the week, volatility in the space could pick up materially.

Also, click here to view the full article on Moneyshow.com published on June 10th, 2026. 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.

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You’re Seeing A Bounce And A ‘Buy The Dip Says Sevens Report

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The two underpinnings of the rally are really earnings and economic growth, Tom Essaye tells Barron’s.

The Dow Is Leading. Wall Street Is Selling Winners and Buying Losers.

“You’re just seeing sort of a bounce and a ‘buy the dip,’” Sevens Report Research’s Tom Essaye tells Barron’s. “The consumer is holding up really, really well. There are some concerns that increased price hikes into the coming months will continue to sort of strain consumer spending, but there’s just no real evidence that that’s happening yet.”

Essaye says that as long as the labor market holds on and AI spending continues to drive massive earnings growth, the market can keep chugging.

“All of this money being spent is essentially being just firehosed onto the economy by the hyperscalers, by investors that are just clamoring to build out these AI data centers, and it’s creating this, essentially additional stimulus program, that’s helping every sector of the market—every single one,” Essaye says. “If that is not self-sustaining, if all of that doesn’t have a net positive ROI, and it stops, then everything has a real big problem. But it’s not stopping any time soon.”

Also, click here to view the full article published in Barron’s on May 27th, 2026. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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Tom Essaye Quoted In TheEdgeSignapore

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S&P extends gain as chipmakers eye best two-day gain in Month

“The tech-led rebound in the wake of Friday’s market rout continues amid AI earnings optimism and easing geopolitical angst, as President Trump reiterates a peace deal with Iran is imminent,” wrote Tom Essaye, founder of ‘The Sevens Report’ newsletter.

Also, click here to view the full article published in TheEdgeSingapore.com on June 9th, 2026. 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.

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U.S./Iran Conflict And AI Continue To Dominate The Market Narrative

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Nasdaq-100 Falls As Investors Rotate From AI To Old Economy

“The U.S./Iran conflict and AI continue to dominate the market narrative, but tomorrow’s jobs report is still very important for markets because the strong labor market is a critical offset for the consumer amidst high inflation,” said Tom Essaye of the Sevens Report. “A ‘too tight’ labor market would risk increasing the chances of Fed rate hikes sooner than expected.”

Also, click here to view the full article published in Financial Advisor Magazine on June 4th, 2026. 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.

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Tom Essaye Quoted In The Money Show

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SPX: The Underappreciated Force Behind Market Resilience

A key (and largely underappreciated) factor behind recent stock market resilience, with the S&P 500 Inex (^SPX) reversing from early losses to record highs late last week, was a meaningful shift in Federal Reserve sentiment, writes Tom Essaye, president of the Sevens Report.

As the CME’s FedWatch tool shows, rate hike odds between now and the end of 2026 have reversed sharply to two-week lows – fading below 50% after being as high as 70% the week before.

That is noteworthy in the context of last week’s Goldilocks PCE data and lower-revised Q1 GDP growth. The data reduced the threats of runaway inflation and a run-hot economy.

Those were two simmering risks behind May’s Treasury yield breakout, including the 30-Year Treasury Bond yield hitting its highest level since 2007. With the 30-year now 20 bps below its mid-May peak, accelerating inflation and run-hot economy risks are being priced out. Plus, Fed policy expectations have shifted from a market headwind to a market-neutral/market-positive influence on risk assets.

In the sessions ahead, it will be important to see rate hike odds and Treasury yields continue to fade, as those fixed income dynamics are acting as a meaningful new tailwind for stocks.

Also, click here to view the full article on Moneyshow.com published on June 1st, 2026. 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.