'Magnificent Seven' fuel S&P 500 gains as global firms brace for tariff fallout

Steve Sosnick, chief market analyst at Interactive Brokers, said, “The tariffs are still in their infancy, especially with major trading partners like Canada, China and India still in flux.” 

While some strategists remain optimistic, others caution that volatility may return.  

Evercore ISI analysts forecast a possible market dip of 7 percent to 15 percent between September and October, citing slowing growth and rising inflation, though they expect the AI-driven bull rally to continue. 

“We are figuring out that some industries may be affected, but they also might gain because (new) markets are open to them that may have been closed in the past,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.  

She added that it may take a few more quarters to understand how the situation will unfold.