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3 Market Cycles in 8 Months: How to Trade What’s Coming Next

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Sevens Report breaks down past trends to prepare investors for the future

3 markets in eight months — understanding the playbook for what’s next

3 PHASES. 8 MONTHS. 1 STRATEGY TO STAY AHEAD.

According to Sevens Report, the past eight months saw U.S. markets shift through three clear phases — each tied to macroeconomic policy and sentiment:

  1. Trumponomics Euphoria (Nov–Jan):
    Fueled by expectations of tax cuts, deregulation, and GOP control.

    • S&P 500 +5.4%

    • Cyclicals like financials and consumer discretionary outperformed.

  2. Recession Paranoia (Feb–Apr):
    Escalating tariff threats and erratic policy execution spooked investors.

    • S&P 500 −7.86%

    • Defensives like utilities and staples led.

  3. Ignoring Macro, Chasing Growth (May–Present):
    Trade concerns eased, and investor focus shifted to AI-led growth.

    • Rally led by NVIDIA, Microsoft, Alphabet

    • AI tech and intrinsic-growth names dominate.

“Understanding what defined them and the strategies that outperformed will help us 1) Identify the next type of market and 2) Outperform.”

What’s next depends on trade clarity and growth outlook:

  • Improved clarity = return of Trumponomics

  • Worsening outlook = back to Recession Paranoia

  • Lingering uncertainty = AI tech continues to lead

Also, click here to view the full article published in Investing.com on July 15th, 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.

June CPI Shows Early Tariff-Driven Inflation Signs

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Sevens Report says tariff pressures may be emerging in inflation data

Tariff Impact Starts to Show in June CPI Report

TARIFFS START TO BITE?

June’s CPI data came in mostly as expected — but Sevens Report flagged one critical detail: tariff price pressures may already be appearing.

  • Headline CPI: +2.7% YoY (vs. 2.6% est.)
    Driven by higher energy costs from Middle East tensions.

  • Core CPI: +2.9% YoY (in line with forecast)
    But up from May, suggesting an uptick that caught investors’ attention.

“There was enough in this report to keep alive concerns that tariffs will stoke inflation.” — Sevens Report

While the report doesn’t eliminate hopes for a Fed cut later this year, September is now far less likely.

Markets were flat at first — but as investors digested the data, stocks began to slip.

Bottom line: This CPI report was “no worse than feared,” but it’s the first real sign that Trump’s tariff policies are starting to ripple through prices — and the next wave of duties is just weeks away.

Also, click here to view the full article published in agweb.com on July 16th, 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.

A Tale of Three Markets (And Playbooks for Each)

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What’s in Today’s Report:

  • A Tale of Three Markets (And Playbooks for Each)

Stock futures rallied to fresh all-time highs overnight thanks to news the U.S. government will ease restrictions on chip sales to China, specifically some of NVDA’s more powerful AI-chips as CPI data and big bank earnings loom.

There are a slew of potential market catalysts this morning starting with inflation data as CPI (E: 0.3% m/m, 2.7% y/y) and Core CPI (E: 0.3% m/m, 3.0% y/y) data for June will be released ahead of the bell along with one of the first July economic reports, the Empire State Manufacturing Index (-10.0).

Investors will be looking for data that pushes back on stagflation or hard landing scenarios to keep the stock rally going.

Additionally, there are multiple Fed officials scheduled to speak including Bowman (9:15 a.m. ET), Barr (12:45 p.m. ET), Barkin 1:00 p.m. ET), and Collins (2:45 p.m. ET). The market will be looking for positive economic commentary and/or hints of a potential rate cut this month.

Finally, today also marks the unofficial start to Q2 earnings season with several big banks and other noteworthy U.S. companies reporting results including: JPM ($4.51), C ($1.61), BLK ($10.78), WFC ($1.41), BK ($1.74), STT ($2.36), JBHT ($1.34). The stronger the corporate results, the better as strong earnings growth is priced in for the year ahead with equities trading at current levels.

Stocks Hit Highs as Airlines Lead But Tariff Delays Threaten Outlook

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Tom Essaye warns delayed trade policy could derail rate cut expectations

U.S. Stocks Reach New Highs as Airlines Soar, Trade Tensions Persist

TRADE POLICY CLOUDS THE OUTLOOK DESPITE STOCK GAINS

U.S. stocks reached new highs Thursday, boosted by a rally in airline shares, but analysts are sounding caution as tariff uncertainty lingers.

Tom Essaye, founder of The Sevens Report, warned that fluctuating trade policies are likely to impact Fed decisions in the coming months.

“The likelihood of a clear tariff policy before August 1 is zero… which means a July rate cut is off the table.”
— Tom Essaye, Sevens Report

Essaye emphasized that continued delays in trade clarity reduce the odds of a September cut and increase the risk of a longer high-rate environment.

“That raises the risk of economic slowdown.”

Despite bullish price action, underlying policy risks remain unresolved, keeping markets exposed to macro-driven pullbacks.

Also, click here to view the full article featured on AInvest.com 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

S&P 500 Hits New High, But Delayed Tariff Policy May Block Rate Cuts

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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

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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

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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.

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

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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 Market Multiple Table Update

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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.

Those unknowns will act as a weight on equities near term Says Tom Essaye

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Those unknowns will act as a weight on equities near term: Sevens Report Founder Tom Essaye, Quoted in Bloomberg

US Stocks Extend Losing Run as Geopolitics Dampens Investor Mood

“There were already a lot of unknowns for investors to contend with and we’ve added another with the Israel/Iran conflict,” wrote Tom Essaye, founder of The Sevens Report newsletter. “Those unknowns will act as a weight on equities near term and make rallies a bit harder to manufacture, but these unknowns are not, by themselves, enough to cause a correction.”

Also, click here to view the full article featured on Bloomberg published on June 20th, 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