BlackRock: Earnings Stagnation Ahead Despite Big Tech, With Higher Rates Persisting
-
BlackRock strategists don't expect a positive turnaround in Q3 earnings for S&P 500 companies. They see earnings growth remaining stagnant.
-
A small group of big tech stocks like Microsoft, Google, Meta, Amazon, Apple have been driving market gains. Several report earnings this week.
-
BlackRock sees "stealth stagnation" in earnings over past 18 months, masked by resilient consumer spending and GDP growth.
-
With Treasury yields spiking, markets are coming around to BlackRock’s view of higher rates for longer.
-
BlackRock is overweight short-term Treasurys but likes quality equities and fixed income too, plus AI, globalization shifts, low-carbon transition, future of finance.