Why BlackRock’s Rick Rieder is assured in equities within the second half as S&P 500 nears excessive

CHICAGO — BlackRock’s Rick Rieder is assured a inventory market nearing all-time highs can go even increased within the second half of 2025, as inflation comes down due to synthetic intelligence.

“I feel it is the best know-how revolution ever. So, what does it imply? My private view, inflation is coming means down,” Rieder mentioned Wednesday throughout a keynote speech on the Morningstar Funding Convention.

The funding chief of world fastened revenue mentioned he expects the productiveness positive aspects to be constituted of synthetic intelligence will offset any hit to inflation from tariffs, which he mentioned can be a one-time adjustment for the U.S. economic system relatively than a lingering problem.

He added that the U.S. economic system is unlikely to fall right into a recession, given its reliance on providers for progress, relatively than items — that are extra cyclical.

Rieder’s feedback come because the S&P 500 trades lower than 1% beneath its file excessive set in February. Whereas the market nonetheless contends with a number of macroeconomic challenges, together with a tenuous ceasefire within the Center East, and better tariffs that may probably strain the U.S. greenback, he stays shares will surmount these challenges.

“The S&P 500 returned virtually the complete market cap of the DAX in 2024,” Rieder informed buyers. “Once I discuss to worldwide buyers … they will diversify away from Treasurys to some extent, however they are not going to diversify away from U.S. equities as a result of there is not any different recreation on the town.”

To make certain, Rieder thinks some buyers can be disenchanted with financial coverage in 2025, noting he expects the Federal Reserve to chop fee simply twice this yr beginning in September — as it really works via the short-term impression of upper tariffs.