Sevens Report Research founder, Tom Essaye, joins Opening Bid host Brian Sozzi to discuss the resilience of the stock market (^DJI, ^GSPC, ^IXIC) and what to keep an eye on heading into 2026.
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00:00 Speaker A
Why can’t this continue into next year? If tariffs aren’t going to take down a market, if the shutdown’s not going to take down the market, if higher valuations aren’t going to take down the market, we have the Fed out there likely to cut rates a couple more times next year. I what hits things here?
00:20 Speaker B
Yeah, so as we think about what goes wrong, I think that the simplest way to describe it, it’s it’s not that people were wrong to be worried about, you know, all these tariffs or policy uncertainty. It’s that they expected it to be negative too soon. So the economy is still facing headwinds. The unemployment rate is rising. We are seeing economic metrics come in. But it’s not reacting to tariffs and trade uncertainty as fast as everybody expected it to. But just because it doesn’t do it as quickly, it doesn’t mean it’s not going to happen. And I think that to me as we look at 2026, I can start painting a case that the stock market is starting to make the economy look better than it really is because AI is powering the S&P 500 higher, while the rest of these sectors, while not bad, we’re starting to see little cracks. And I think that’s a big thing to watch in 2026.
