economy
BlackRock raises view on U.S. stocks on belief that war is over, profits are up
The firm, which manages $14 trillion for clients, said in its weekly market note that it raised the rating a notch to overweight from neutral.
TL;DR
- BlackRock upgraded its outlook for U.S. stocks to overweight from neutral.
- The decision is based on contained impacts from the Iran war and strong corporate earnings.
- Evidence of reopened Strait of Hormuz flows and limited macro impact were key factors.
- Corporate earnings expectations have climbed for the U.S. and emerging markets for 2026.
- The threshold for renewed conflict between the U.S. and Iran is perceived as high.
- S&P 500 companies are expected to see a 12.6% profit increase in the first quarter, potentially rising to 19%.
- Technology profits are projected to grow 45% this year, with sector valuations at their lowest since mid-2020.
- BlackRock favors thematic opportunities like defense.
- The U.S. and emerging markets are the only overweights in BlackRock's equity portfolio.