BlackRock bets on AI-driven stocks rally but US debt clouds 2025 outlook

BlackRock (BLK.N) forecasts that the artificial intelligence (AI) boom will continue to drive U.S. stock growth in 2025, benefiting U.S. markets more than European ones, with private markets playing a growing role in financing AI infrastructure. Despite expectations of a slight slowdown in U.S. economic growth, BlackRock predicts that inflation will keep the Federal Reserve from lowering interest rates significantly, maintaining rates above 4%.

Rising U.S. government debt levels could push long-term Treasury yields higher, prompting BlackRock to underweight U.S. Treasuries and prefer U.S. corporate debt and government bonds from other developed markets like the UK. The firm favors sectors such as tech and healthcare and sees gold and bitcoin as alternatives to offset potential stock market declines. Additionally, BlackRock's acquisition of HPS Investment Partners for $12 billion signals a stronger focus on private credit and infrastructure investments, areas it sees as offering high growth potential, especially related to AI adoption.