BlackRock: Expects a soft landing in the United States, upgrades rating on US stocks to buy

Compared to the cautious attitude in mid-January, the asset management giant BlackRock has started to show optimistic expectations for the US economy and the performance of US stocks.

On Monday, January 29th, BlackRock stated that due to the expected "soft landing" of the US economy, it has upgraded its rating on US stocks from "neutral" to "overweight".

BlackRock also stated that if inflation and interest rates decline in the coming months, the AI-driven stock market rally will spread to sectors beyond technology stocks.

The cooling of US inflation data also supports BlackRock's view. On Friday, January 26th, the core PCE price index, the inflation indicator most favored by the Federal Reserve, grew by 2.9% YoY in December, hitting a new low since March 2021. Investors generally expect that due to the faster-than-expected decline in inflation, the Federal Reserve may cut interest rates in the spring of this year. However, some Federal Reserve officials still express concerns that they may need to raise interest rates again after cutting them to counter inflation rebound.

In the previous rating on January 16th, BlackRock held a neutral view on US stocks and preferred AI concept stocks. Its strategists believed that US stocks were "overvalued". BlackRock also warned at that time that the market underestimated the volatility of inflation, and the "roller coaster-like" rebound of inflation could disrupt investors' rosy expectations of a "soft landing" for the US economy.