"BlackRock Upgrades U.S. Stocks to Overweight, Expects Broadened AI-Driven Rally"

BlackRock upgrades its outlook for U.S. stocks to overweight, citing the potential for a broadening of the tech-driven rally fueled by investor excitement over artificial intelligence. The world's largest asset manager sees the S&P 500's upward momentum continuing for the next six to 12 months amid cooling inflation and potential interest-rate cuts by the Federal Reserve. However, they remain cautious and ready to pivot due to potential uncertainties, including the challenge to the consensus view of a soft landing for the U.S. economy and the likelihood of inflation resurgence in the long term.