"Earnings Season Begins: Is the Stock Market Turning a Blind Eye to Troubling News?"

BlackRock strategists predict that U.S. corporate earnings growth will remain stagnant in the third quarter, despite hopes for a positive turnaround. They believe that the market narrative of a resilient economy is masking a "stealth stagnation" trend that has gone unnoticed due to strong consumer spending, GDP, and job growth. With interest rates expected to stay higher for longer, the team is overweight on short-dated Treasurys and favors quality in equities and fixed-income. They also see potential in artificial intelligence, the rewiring of globalization, the transition to a low-carbon economy, and the future of finance.