Compared with the cautious attitude in the middle of this month, asset management giant BlackRock has begun to show optimistic expectations for the US economy and the trend of US stocks.
On Monday, January 29, BlackRock saidIn anticipation of a "soft landing" for the U.S. economy, the rating of U.S. equities was upgraded to "overweight" from "neutral".
BlackRock also said that if inflation and interest rates fall in the coming months, the AI-driven trend will spread beyond technology stocks.
The resurgence of cooling US inflation data also supported BlackRock's view. On Friday, January 26, the Fed's favorite inflation gauge, the core PCE price index, rose 2% year-on-year in December9%, the lowest since March 2021. Investors widely expect the Federal Reserve to cut interest rates this spring, given that inflation is falling faster than expected. However, there are still some Feds** who have said they are concerned that they may need to raise interest rates again after cutting rates to combat inflation**.
In its previous rating on January 16, BlackRock was neutral on U.S. equities and preferred artificial intelligence stocks, with its strategists believing that U.S. equities were "overvalued." BlackRock also warned at the time that the market was underestimating the recurrence of inflation, and that the "roller coaster" of inflation could disrupt investors' hopes for a "soft landing" for the U.S. economy. **Wall Street news, welcome**APP to see more.