BlackRock’s Bullish Bet: AI-Driven Tech Stocks to Fuel U.S. Stock Market Rally

BlackRock, the world’s largest asset management company, predicts that the U.S. stock market will continue to rally this year, driven by artificial intelligence (AI). The analysis suggests that tech stocks will yield high returns due to expectations of easing inflation and interest rate cuts.

According to the U.S. investment specialist media, Market Watch, on the 30th, BlackRock upgraded its U.S. stock outlook from “neutral” to “overweight.”

BlackRock analyzed, “The tech-stock-centered rally in the stock market, triggered by investors’ enthusiasm for AI, will further expand, backed by the positive outlook for an inflation slowdown and expected Federal Reserve (Fed) interest rate cuts.”

BlackRock explained, “The market is anticipating a soft landing with inflation falling to the 2% range without an economic downturn,” and “there is also a possibility that the Fed could start cutting interest rates as early as the first half of this year.” It added, “The upward momentum of the S&P 500 could continue for 6 to 12 months.”

The U.S. stock market has continued to reach new heights day after day since the beginning of the year. On the 29th (local time), the S&P 500 closed at 4927.93, up 0.76%, setting a record high for the sixth consecutive trading day. The Dow Jones also ended trading at 38,333.45, up 0.59%, recording a record high for the third straight trading day.

BlackRock, the world’s largest manager with $9.5 trillion in assets under management (AUM), is led by Larry Fink, also known as the “King of Wall Street.” BlackRock holds stakes in major global companies such as Apple, Amazon, and Samsung Electronics.