BlackRock Anticipates Continued AI-Driven Stock Rally in the U.S.

BlackRock expressed that it expects the artificial intelligence boom to continue boosting U.S. equities over the next year and to support economic growth more broadly, while also highlighting that increasing U.S. government debt levels could threaten optimistic 2025 forecasts.

In a statement from the BlackRock Investment Institute, the research arm of the world's largest asset manager, it was noted that innovations in AI technology are likely to benefit U.S. stocks more than their European counterparts, and private markets will play an increasingly important role in financing AI-related infrastructure.

Based on insights from senior portfolio managers and investment managers overseeing $11.5 trillion in assets, the 2025 outlook report advised, "We remain open to risk and recommend increasing 'weight' in U.S. equities as the AI theme expands."

The institute indicated that U.S. economic growth could cool slightly next year, and due to persistent inflation remaining above the central bank's target, the Fed is unlikely to meaningfully reduce interest rates. They emphasized that they do not expect interest rates to drop below the current range of 4.5%-4.75%.