BlackRock restores its overweight position in US stocks, saying that the impact of the Middle East conflict is manageable and that AI-driven earnings expectations are rising

Gate News, on April 13, BlackRock strategists resumed their overweight view on U.S. stocks, believing that the impact of the Middle East conflict on global economic growth is “likely to be contained.” After the risk stance was lowered and the outlook turned neutral weeks earlier due to the escalation of the Middle East conflict, the strategists team led by Jean Boivin, head of BlackRock Investment Research, said in a report on Monday local time that they have been watching “two signals that would increase risk exposure,” including signs of shipping normalization through the Strait of Hormuz (a globally important oil shipping route), as well as indications that the war’s impact on the economy is limited. The team said, “We’ve seen progress on both fronts,” adding that a recent ceasefire “is crucial,” with the threshold for returning to war “higher.” BlackRock also emphasized the upcoming earnings season, noting that “even during the conflict, expectations for corporate earnings are still rising, partly thanks to AI themes.” For U.S. equities, BlackRock said, “The impact of the Middle East conflict on global growth is manageable, and along with strong earnings expectations—especially for the technology sector—this keeps us in a risk-on posture.”

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