Wall Street Veteran Warns Tariffs Could Disrupt AI-Driven Market Rally

Steve Eisman, the famed investor known for forecasting the 2008 housing collapse, is sounding the alarm—not on overvalued tech stocks or interest rates, but on the escalating risk of global trade disputes.

In a recent interview with CNBC, Eisman pointed to tariffs as his primary concern for the stock market. While investor sentiment has grown comfortable, he warned that negotiations, especially with complex blocs like the European Union, remain fraught with political and logistical hurdles. “Each EU country effectively has veto power,” he said, noting the difficulty of reaching unified agreements.

As for U.S.-China relations, Eisman admitted the outlook is too unpredictable to assess confidently. “There are just too many moving parts,” he said, adding that he’s reduced risk in his portfolio and is waiting to see how things unfold.

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Despite optimism surrounding the artificial intelligence sector—fueled in part by NVIDIA’s blockbuster earnings, with revenue surging 69% in a single quarter—Eisman cautioned that geopolitical conflict could derail that momentum. He marveled at NVIDIA’s growth, calling it “insane,” but added a stark warning: “If a trade war breaks out, none of that will matter in the short run.”

For now, Eisman remains long on the market but more cautious than enthusiastic, keeping a watchful eye on rising trade tensions that could reshape the market’s near-term trajectory.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.