Policy Tailwinds Support U.S. Equities Amid Tariff Uncertainty

This weekly commentary by the BlackRock Investment Institute analyzes the resurgence of U.S. tariff and tax policies and their implications for markets.

• Progress in U.S.-China trade talks and new tax and regulatory initiatives are boosting investor sentiment, while sticky inflation keeps pressure on long-term Treasuries.

• Tariffs remain elevated but are unlikely to return to April’s highs; reforms like a federal stablecoin framework and AI incentives support a risk-on stance.

• The team maintains an overweight in U.S. equities and credit, favoring short-duration bonds and infrastructure equity over long-term government debt.

For deeper insights into shifting macro policies and portfolio positioning, read the full report.