Earnings Drive S&P 500 Higher As Tariff Uncertainty Clouds Outlook
Tom Essaye says unclear trade policy could block rate cuts and slow growth
S&P 500 at Record as Corporate Earnings Offset Tariff Jitters
RECORD HIGHS MET WITH POLICY RISKS AHEAD OF FED’S NEXT MOVE
The S&P 500 opened at record levels on Thursday, lifted by strong corporate earnings—but not all strategists are celebrating.
Tom Essaye, founder of Sevens Report Research, warns that persistent tariff uncertainty could reduce the chances of a September rate cut and heighten the risk of a broader economic slowdown.
“There’s zero chance we’ll have tariff clarity by Aug. 1, which makes a July rate cut impossible.”
— Tom Essaye, Sevens Report
According to Essaye, the “consistently delayed” tariff timeline is already having a practical impact by extending the higher-for-longer rate environment.
“The practical impact… is to reduce the chances of a September rate cut.”
Without a clear trade policy resolution, investors may soon be forced to weigh strong earnings against an increasingly restrictive policy backdrop.
Also, click here to view the full article featured on Bloomberg published on July 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
