BlackRock Investment Institute said on Monday it has taken a slightly more bullish stance on U.S. stocks after the U.S. announced a 90-day suspension of most tariffs.
Short-term risks of a “financial accident” have eased following the Trump administration’s decision to suspend high tariffs on most countries, according to a report from asset management giant BlackRock’s research arm.
“Policy uncertainty could weigh on growth and equities in the near term. But we believe the underlying economy and corporate earnings remain solid and supported by powerful forces such as artificial intelligence,” BlackRock analysts said in the report, adding they were overweight U.S. stocks.
Jean Boivin, president of BlackRock Investment Institute, and his colleagues warned that “significant uncertainties remain” and that “continued volatility in risk assets and potentially sharp reversals” remain possible.
The shift in view is a sharp departure from BlackRock’s recommendation revealed a week ago, when it changed its view on U.S. stocks to “neutral” from overweight, citing policy uncertainty.
At the time, the firm said it based its forecast on the following projections: “Risk assets are likely to remain under pressure in the near term until uncertainty begins to dissipate” and “if clarity emerges quickly, we will again increase our risk-taking.”
Looking ahead, BlackRock said its risk stance will depend on tariff policy decisions.
The world’s largest asset manager said last week that its total assets under management hit a record $11.58 trillion in the first quarter of 2025.
