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Asset management giant BlackRock raised its outlook for U.S. stocks, reasoning that contained impacts from the Iran war and strong corporate earnings will create a favorable backdrop for domestic equities.
The firm, which manages $14 trillion for clients, said in its weekly market note that it raised the rating a notch to overweight from neutral.
Developments in the war had made BlackRock cautious on domestic stocks. But it said prospects for a lasting ceasefire now have strategists believing that the impacts won’t be major.
“We saw two signposts that would lead us to re-up risk after reducing it a few weeks ago. First, tangible evidence of actions that would reopen flows through the Strait of Hormuz. And second, visibility on the lingering macro impact being contained,” the firm said. “This comes as expectations for corporate earnings have climbed for both the U.S. and [emerging markets] for 2026 – even since the conflict began on Feb. 28.”
