BlackRock turns neutral on US stocks as yields rise
The asset manager favors short-term Treasurys while keeping its preference for AI stocks amid potential volatility around the AI buildout.
Key takeaways
- BlackRock downgraded US stocks to neutral and upgraded its view on Treasurys.
- BlackRock's strategists said they still favor AI stocks within US equities.
BlackRock downgraded its view on US stocks to neutral and upgraded Treasurys, favoring short-term bonds as yields rise. The shift was made by strategists Jean Boivin, Rick Rieder and Wei Li.
The team said it was taking profits in equities to manage potential volatility around the AI buildout. It kept its preference for AI stocks, saying it remained convinced by AI fundamentals.
A Kobeissi Letter analysis found 84% of S&P 500 stocks were at least 10% below their all-time highs. It also found 59% were down at least 20%, 41% more than 30%, and 17% more than 50%.
This article was produced with the help of AI technology. Source: Yahoo Finance
