BlackRock Remains Risk-on as ‘Mega Forces’ Like AI, Stablecoins Transform Financial Markets

Core Viewpoint - BlackRock is "pro-risk and overweight" U.S. equities, driven by the growth of artificial intelligence (AI) and the rise of stablecoins, which are transforming financial markets as they approach 2026 [1][2] Group 1: AI and Market Dynamics - The firm identifies AI as the most dominant mega force influencing the global economy and U.S. equities [1][2] - BlackRock emphasizes that the current market environment is conducive to active investing, focusing on selecting winners and losers among AI builders [2] Group 2: Role of Stablecoins - Stablecoins are evolving from a niche market to a significant bridge between traditional finance and digital liquidity, with potential applications in cross-border payments and as alternatives to local currencies in emerging markets [3] - The total stablecoin market cap has increased by over $100 billion in the past year, reaching more than $307 billion, primarily driven by Tether's USDT and Circle's USDC [4] Group 3: Future Outlook - BlackRock remains committed to AI investments over the next six to twelve months, supported by strong earnings and healthy balance sheets, indicating a positive outlook for U.S. stocks [5] - The firm anticipates that risk appetite will be bolstered by Federal Reserve rate cuts, reinforcing its overweight position in U.S. equities [5]