BlackRock Sees Sweet Spot for Markets

Benzinga

The world’s largest asset manager says U.S. stocks still have room to run. BlackRock points to Fed rate cuts, a cooling labor market, and AI dominance as reasons for optimism. Tech earnings growth now makes up more than 40% of S&P 500 returns, and BlackRock believes this productivity boom will last. They’ve even upgraded their stance on Treasuries, expecting yields to drop alongside policy easing.

Transcript

00:00BlackRock is betting big on U.S. stocks even with inflation staying sticky. They say the

00:05softening labor market will give the Fed room to cut interest rates this week, pushing stocks

00:10even higher despite slowing economic growth. AI is still the star of the show. BlackRock says

00:16tech now drives over 40% of the S&P 500's returns and earnings growth, and they think it will keep

00:23fueling productivity for years. They even upgraded their view on long-term treasuries, expecting

00:28yields to drop as rate cuts kick in. BlackRock thinks we're in a sweet spot, slower growth,

00:35no recession, and AI keeping stocks hot. Do you agree, or are they underestimating the risk of a

00:40bigger slowdown?

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