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Markets Hold Up Despite Tariff Risk, Sevens Report Urges Caution

Tom Essaye warns a deeper selloff is possible if negative headlines persist


US Stocks End Slightly Lower in Week Roiled by Tariff Headlines

TARIFF UNCERTAINTY LOOMS OVER MARKETS HEADING INTO THE WEEKEND

U.S. stocks ended slightly lower Friday after a volatile week driven by ongoing tariff headlines. While markets showed notable resilience, the risk of escalation remains very real, according to Tom Essaye, founder of Sevens Report Research.

“Markets have been impressively resilient… but if negative trade headlines continue, don’t be surprised if this early selloff accelerates.”
Tom Essaye, Sevens Report

Essaye emphasized that tariff rates may climb far higher than expected, and the market may be underpricing the potential fallout.

“…because tariff rates are possibly going much, much higher than previously expected.”

With investor focus shifting toward the Fed’s next move and earnings season ahead, any further deterioration in trade sentiment could trigger renewed volatility.

Also, click here to view the full article featured on Bloomberg published on July 11th, 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 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.

Also, click here to view the full article featured on Swissinfo.ch 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

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

Bitcoin/Crypto Monthly Update

What’s in Today’s Report:

  • Bitcoin/Crypto Monthly Update

Futures are modestly lower following more tariff increases and escalation in the tensions between the White House and Fed.

President Trump increased tariff rates on non-USMCA goods from Canada to 35% and threatened to increase the baseline tariff on all imports to 15% – 20% (from 10%).

Tensions between the White House and Fed rose on Thursday, as the Office of Management and Budget is now investigating the Federal Reserve building renovation.

Today there are no economic reports so trade headlines will be in focus, including the tariff rates on the EU and Taiwan.  Markets have been impressively resilient this week in the face of potentially dramatic tariff escalation, but if negative trade headlines continue throughout the day, don’t be surprised if this early selloff accelerates because tariff rates are possibly going much, much higher than previously expected.

Sevens Report Updates S&P 500 Outlook: Here’s What Could Happen Next

Midyear valuation scenarios show limited upside—and real downside risk if key levels break


S&P 500: Exploring best- and worst-case scenarios for H2 2025

S&P 500 STARTS H2 2025 PRICED TO PERFECTION, SAYS SEVENS REPORT

With markets hovering near all-time highs, Sevens Report Research has released its updated valuation targets for the S&P 500—and the range of potential outcomes for the rest of 2025 is wide.

“Markets are largely priced to perfection at the start of H2’25.”
Sevens Report

Under the baseline scenario, based on projected 2026 earnings of $295/share, Sevens pegs fair value between 6,195 and 6,343, with 6,269 acting as a technical midpoint.

  • 6,195 = near-term support

  • 6,269 = technical pivot

  • 6,343 = upside resistance

A break above this range could lead to a “better-if” rally scenario:

  • Target: 6,600

  • Assumes $300/share in earnings and a 22× multiple

  • Represents only ~6% upside from recent levels

  • A move above 6,600 could open the door to 6,860, the 161.8% Fibonacci extension

But downside risks remain in a “worse-if” case:

  • Target range: 4,675–4,950

  • Assumes $275/share EPS and a 17–18× multiple

  • Midpoint: 4,813, a “technically critical” level

  • Weekly close below 4,813 could trigger a deep bear market toward 3,675

“A collapse of that magnitude may sound far-fetched, but history shows it wouldn’t be unprecedented.”

With valuations stretched and catalysts limited, Sevens cautions that investor focus should now shift to earnings quality, macro stability, and technical levels that could define the second half of the year.

Also, click here to view the full Investing.com article featured on Yahoo Finance published on July 9th, 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.

Stocks Close Mixed as Tariff Worries Return, But Tom Essaye Says Markets Aren’t Buying It Yet

Sevens Report sees complacency risk as indexes sit near all-time highs


S&P 500: Exploring best- and worst-case scenarios for H2 2025

U.S. stocks ended mixed on Wednesday as investors weighed the latest tariff uncertainty, but according to Tom Essaye of Sevens Report Research, the market’s muted reaction may be telling.

“If people believed it, we’d be down several percentage points… The fact that we’re not means nobody believes it.”
Tom Essaye, Sevens Report

Essaye noted that sentiment, once extremely bearish in the spring, has since shifted—creating a more fragile market environment as stocks hover near all-time highs.

“The market has become vulnerable to negative surprises.”

That vulnerability could amplify any future macro shocks—especially if investor complacency builds while real risks remain unresolved.

Also, click here to view the full Xinhua article, published on July 8th, 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.

July MMT Chart: New S&P 500 Targets to Watch

What’s in Today’s Report:

  • July MMT Chart: New S&P 500 Targets to Watch

U.S. equity futures are mostly higher, albeit modestly so while global bond yields are steady as investors continue to digest this week’s latest tariff headlines and broader trade war developments.

Economically, Chinese CPI edged up +0.1% vs. (E) -0.1% y/y in June while PPI fell -3.6% vs. (E) -3.2% y/y last month.

Looking into today’s session, there is one lesser-followed economic report due to be released: Wholesale inventories (E: -0.3%) but the reports shouldn’t materially move markets.

Moving into the afternoon, there are two potential catalysts to watch: A 10-Yr Treasury Note auction at 1:00 p.m. ET (foreign demand for yesterday’s 3-Yr auction was light and more of the same today would put upward pressure on yields and likely weigh on stocks), and the release of the June FOMC Meeting Minutes (2:00 p.m. ET) which could shed more light on the timeframe for the Fed’s next rate cut.

Bottom line, the economic calendar and Fed speaker circuit both remain light/thin today as has been the case all week which will leave investors primarily focused on very fluid tariff headlines and sentiment towards the broader global trade war. The more progress towards concrete deals, the better for risk assets while any further escalations are likely to further weigh on stocks in thin summer trade.

Stock Futures Dip as Tariff Pressures Build — Sevens Report Warns of Long-Term Risks

Tom Essaye on why markets may be ignoring the true cost of rising global tariffs


Stock futures point to declines as investors face tariffs ‘much higher than anything in decades’

After a strong finish last week, U.S. stock futures pointed to modest declines Monday morning as investors began to confront the growing scale of global tariffs.

According to Sevens Report Research, markets may be underestimating the long-term impact of the tariff wave—one unlike anything seen in decades.

“Tariffs are already coming in higher than markets expected and much higher than anything in decades.”
Tom Essaye, Sevens Report

Founder Tom Essaye pointed to new trade deals and policy changes across major economies:

  • Vietnam just signed a deal with 20% baseline tariffs and 40% tariffs on rerouted goods

  • China: 30% tariffs

  • UK: 10% tariffs

  • “A soon-to-be host” of other countries are following suit

Despite this, the S&P 500 closed at a record high last week, with momentum continuing to push stocks upward. But Essaye cautioned that these risks are compounding beneath the surface:

“While the path of least resistance is higher… there are real risks building in the distance.”

He also noted that while the recently passed tax and spending bill may provide near-term stimulus, it will increase the national deficit in coming years—adding another layer of risk for investors to consider.

Also, click here to view the full MarketWatch article, published on July 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.

July Market Multiple Table Update

What’s in Today’s Report:

  • July Market Multiple Table – Is the Good News All Priced In?
  • Needed Context for Tariff & Trade Deal Announcements

U.S. futures are slightly higher while global shares were mixed overnight with Asian markets outperforming and EU equities lagging as the latest trade war news was digested.

President Trump’s latest round of tariffs were viewed as not-as-bad-as-feared with deadlines being pushed back and multiple mentions of potential exemptions mentioned in discussions with the EU and Asian trading partners, leaving markets steady this morning.

Economically, the NFIB Small Business Optimism Index edged down from 98.8 to 98.6 vs. (E) 98.7 in June but the report is not materially impacting markets this morning.

Today there is just one, lesser-followed economic report due out in the afternoon: Consumer Credit (E: $11.5B) and there are no Fed officials scheduled to speak.

There is a 3-Year Treasury Note auction at 1:00 p.m. ET that could potentially move yields and impact equity markets, but otherwise, trader focus will remain on the still very fluid trade war narrative.

Dow and Russell 2000 Are Rallying But Don’t Call It a Breakout Just Yet

Tom Essaye on why broader confirmation is still needed for this to be a real bull-market shift


Dow Jones and Russell 2000 Are Joining the Stock Market Party. Would It Be a Game Changer for the Bulls?

The recent surge in the Dow Jones Industrial Average and Russell 2000 has caught investor attention, raising hopes that a broader bull market is finally taking shape.

But according to Tom Essaye, founder of Sevens Report Research, this may not yet be the breakout moment investors are hoping for.

“Investors shouldn’t automatically increase their exposure just because the Dow is near record levels.”
Tom Essaye, Sevens Report

Essaye emphasized that while the Dow’s rally is a positive development, it reflects only a narrow segment of the market—just 30 large-cap companies—and doesn’t fully reflect market breadth.

“More meaningful progress would come from record highs in the Russell 2000 or equal-weighted S&P 500,”
Tom Essaye, Sevens Report

While both the Russell 2000 and equal-weighted S&P 500 have made notable moves recently, they still remain below prior record levels, suggesting that the broader market has more work to do before confirming a sustained breakout.

Also, click here to view the full article, published on July 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.