S&P 500 Hits New High, But Delayed Tariff Policy May Block Rate Cuts
Tom Essaye warns unclear trade policy may prolong high rates and slow growth
S&P 500 Rises to Record as Treasury Sale Goes Well: Markets Wrap
TREASURY AUCTION BOOSTS STOCKS—BUT POLICY RISKS STILL LOOM
The S&P 500 climbed to a fresh record Thursday as a strong Treasury auction eased market concerns over demand for U.S. debt. But Sevens Report’s Tom Essaye cautions that persistent tariff uncertainty may soon weigh on investor optimism.
“There’s zero chance we’ll have tariff clarity by Aug. 1, which makes a July rate cut impossible.”
— Tom Essaye, Sevens Report
Essaye says the real risk lies in the ripple effect: delayed trade policy could weaken the odds of a September rate cut, keeping rates elevated and increasing the chance of an economic slowdown.
“The practical impact… is to reduce the chances of a September rate cut.”
As equities surge, markets may be pricing in too much optimism while ignoring trade-related policy drag that could resurface later this quarter.
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