Earnings Strength Keeps Markets Risk-On

BlackRock Investment Institute says powerful earnings momentum and accelerating AI monetisation continue to support global equities, even as geopolitical fragmentation reshapes market leadership. 

• The S&P 500 recorded its best month since 2020, driven largely by mega-cap technology and upward earnings revisions.
• Around 83% of S&P 500 companies beat earnings estimates, with average profit surprises of 11%.
• BlackRock remains overweight U.S. and emerging-market equities, particularly AI infrastructure, semiconductors, and commodity exporters.
• Europe and Japan remain more exposed to Middle East energy disruptions, while the U.S. benefits from relative energy independence.

The market narrative is still AI. But beneath it, a parallel repricing around energy security and fragmentation is steadily taking shape.