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.

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“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.

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Tyler Richey Quoted in Troymedia.com as Oil Oversupply Pressures Grow

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OPEC+ blinks as oil oversupply pressures grow

The World Bank Group forecasts that excess global oil supply could average four million bpd by 2026. That kind of surplus has consequences. U.S. benchmark West Texas oil prices “could fall as low as the mid-US$30s within a year if the sizable physical market surplus expected in 2026 becomes reality,” said Tyler Richey, co-editor at Sevens Report Research.

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

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Tesla Investors Should ‘Write the Check’ for Musk’s Pay Package: Essaye Interviewed on Yahoo Finance

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Tom Essaye says shareholders should back Elon Musk’s $1 trillion compensation plan and let him “do his thing.”

Tesla investors should ‘write the check’ for Musk’s pay package

Tesla (TSLA) shareholders will be voting on Tesla CEO Elon Musk’s $1 trillion pay package ahead of the company’s annual shareholder meeting on Thursday, Nov. 6. Sevens Report Research founder Tom Essaye tells Yahoo Finance that shareholders should “write the check” and let Musk “do his thing.”

Also, click here to view the full interview on Yahoo Finance published on November 3rd, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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Tom Essaye warns that most S&P 500 stocks are lagging as the index hits new highs.

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S&P 500’s Gains Look Deceptive Despite 16% Yearly Rally

SPX: Two Concerning Trends to Watch as Stocks Hit New Highs

The S&P 500 slipped 0.9% last Thursday, a modest pullback given its 16.2% year-to-date gain. But according to Tom Essaye, president of Sevens Report Research, that strength is “more than a little bit deceiving.”

Of the 503 companies in the index, only 144 — or 28.6% — are outperforming, while 227 are down for the year. Essaye noted that this imbalance raises questions about how sustainable the rally really is.

He also highlighted that the NYSE Advance-Decline Line fell to a 12-week low last week, even as the S&P 500 posted 14 record closes since September — a signal that far fewer stocks are moving higher during the rally.

Essaye concluded that while concentrated leadership is normal during long market advances, current extremes suggest risks are building beneath the surface.

Also, click here to view the full article on Moneyshow.com published on November 3rd, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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The Companies Financing AI: Tom Essaye Interviewed on Yahoo Finance

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Tom Essaye joins Yahoo Finance to discuss Big Tech names financing artificial intelligence (AI) buildouts with debt

Google, Meta finance AI with debt: Why it’s ‘bullish’ for now

Sevens Report Research founder Tom Essaye, Yahoo Finance Senior Reporter Ines Ferré, and Yahoo Finance Senior Reporter Brooke DiPalma join Opening Bid host Brian Sozzi to discuss the Big Tech names financing artificial intelligence (AI) buildouts with debt.

Also, click here to view the full interview on Yahoo Finance published on November 3rd, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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Sevens Report Warns Weak Market Breadth Threatens S&P 500 Rally

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Tom Essaye cautions that rising concentration and falling participation raise risks of another sharp pullback.

Pay attention to these ’concerning’ market developments

U.S. equities fell Thursday as investors shifted focus from the Trump-Xi summit to surging bond yields and lackluster mega-cap tech earnings. The S&P 500 dropped nearly 1%, closing at weekly lows. While still up 16.25% year-to-date, Tom Essaye of Sevens Report Research said the rally is “deceiving,” with market breadth weakening beneath the surface.

Essaye noted that the top 10 companies now make up 40.5% of the S&P 500’s value — surpassing the tech bubble peak — with Nvidia alone at 8% after surpassing a $5 trillion market cap. Only 28.6% of S&P components are outperforming the index, and just 53% remain above their 200-day moving average. The NYSE Advance-Decline Line has also hit a 12-week low.

He warned that without a rebound in market breadth, risks of another “air pocket-style” drop or April-like correction are rising. “A broad-based rebound is needed to confirm that the bull market remains alive and well,” Essaye wrote.

Also, click here to view the full article published in Investing.com on November 1st, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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Sevens Report: Oil Market Faces Record Surplus Despite U.S.-China Trade Truce

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Tyler Richey warns crude prices could fall to mid-$30s as 2026 supply glut looms.

An oil supply glut could sink prices to $35 a barrel next year. Why the U.S.-China trade truce won’t change that.

While President Trump’s trade truce with China offered a brief dose of optimism, Sevens Report Research warns it won’t offset an impending record oil surplus. Co-editor Tyler Richey told MarketWatch that the deal “does not change the current physical market math,” which still points to a 2026 supply glut averaging 4 million barrels per day, according to World Bank and IEA data. Richey cautioned that WTI crude could drop to the mid-$30s if forecasts hold, echoing the 2010s OPEC price war. Despite the tariff resolution, oil prices barely moved, as analysts see little change in supply-demand dynamics. Richey said only a major geopolitical shock or a global growth surge could shift the bearish outlook, noting fundamentals “remain tilted in favor of the oil bears.”

Also, click here to view the full article published in MarketWatch on October 30th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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Sevens Report Warns of Rising Risks as S&P 500 Breadth Weakens

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Tom Essaye cautions that half of S&P 500 stocks are down YTD despite record-level index.

Why risks of a stock-market drop are rising amid extreme concentration in the S&P 500, Sevens Report warns

Nearly half of S&P 500 stocks are posting year-to-date losses even as the index trades near record highs, according to Sevens Report Research. Founder Tom Essaye warned this divergence signals growing market fragility. “That is not so healthy,” he said, noting the risk of another sharp “air pocket” drop or a broader April-style pullback is rising daily. The top 10 S&P 500 companies now make up 40.5% of the index—surpassing the concentration seen during the 2000 tech bubble. Essaye also flagged weakening market breadth, with the NYSE Advance-Decline Line hitting a 12-week low and only 53% of S&P 500 stocks trading above their 200-day moving averages, the lowest since June.

Also, click here to view the full article published in MarketWatch on October 31st, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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Fed Caution, AI Bubble Warnings, and Trade Tensions Shape Market Mood

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Tom Essaye warns of rising correction risks as the Fed tempers rate-cut expectations.

Navigating the Aftermath: Market Outlook Post-Declines Amidst Trade Truce and Rate Uncertainty

September 2025 marked the start of the Federal Reserve’s rate-cutting cycle with a 25-basis-point reduction, but optimism quickly faded. In early October, warnings of a potential “AI bubble” intensified, with Sevens Report’s Tom Essaye cautioning that a burst could drag the S&P 500 down 10%–20%. JPMorgan CEO Jamie Dimon also warned of a possible sharp correction.

By October 29, the Fed cut rates again to a 3.75–4.00% range, but Chair Jerome Powell’s statement that a December cut was “not a foregone conclusion” cooled expectations. The cautious tone, combined with ongoing U.S.-China trade tensions and Trump’s tariff threats, weighed on sentiment.

Tech giants like Nvidia, AMD, Amazon, Meta, Microsoft, and Alphabet remain at the center of investor focus as their valuations drive market direction. Meanwhile, analysts and policymakers alike are watching whether Fed policy, AI enthusiasm, and trade diplomacy can keep markets stable through year-end.

Also, click here to view the full article on WRAL.com published on October 30th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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Sevens Report: Powell’s Hawkish Tone “Not Bearish” for Stocks

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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.”

Also, click here to view the full article published in MarketWatch on October 30th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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