Staying Risk-On as Fed Cuts Loom and Macro Tensions Ease

BlackRock Investment Institute’s weekly commentary outlines tactical positioning amid slowing growth, sticky inflation, and upcoming central bank meetings.

• A softening U.S. labor market gives the Fed scope to resume rate cuts, supporting equities and the AI-driven growth theme.

• Long-term U.S. Treasuries are lifted to neutral: yields could dip in the near term, but structural pressures for higher rates persist.

• Elevated valuations in tech are seen as justified if earnings growth of 15–20% materializes, though balance sheet health remains a watchpoint.

How should investors balance risk-on positioning with rising yield curve pressures? Explore the full commentary for detailed views.