BlackRock Resumes Overweight View on U.S. Stocks, Believes Iran War Impact is Manageable

Odaily News BlackRock strategists have resumed their overweight view on U.S. stocks, believing the impact of the Middle East conflict on global economic growth "could be contained." After downgrading risk and adopting a neutral stance several weeks ago due to escalating Middle East tensions, a team of strategists led by Jean Boivin, head of the BlackRock Investment Institute, stated in a report on Monday local time that they have been monitoring "two signals to increase risk exposure." These include the resumption of shipping through the Strait of Hormuz and signs that the war's economic impact is limited. They noted, "We have seen progress on both fronts," adding that the recent ceasefire is "crucial" and the threshold for a return to war is "high." BlackRock also emphasized the upcoming earnings season. "Even during the conflict, corporate earnings expectations have been rising, partly thanks to the AI theme." Regarding U.S. stocks, BlackRock stated, "The manageable impact of the Middle East conflict on global growth, coupled with strong earnings expectations—especially in the tech sector—keeps us risk-on."