The BlackRock Investment Institute downgraded U.S. equities from overweight to neutral, citing potential near-term volatility tied to the build-out of artificial intelligence infrastructure. It described the move as short-term risk management, not a shift in its long-term conviction in AI’s transformative power.
BlackRock upgraded short-dated U.S. Treasuries to overweight for the first time in nearly six years. The 10-year Treasury yield has climbed above 5.2%, making government bonds more attractive for income, the firm said. BlackRock also said market expectations for future Federal Reserve rate hikes appear excessive.