"BlackRock Warns Not All AI Stocks Will Thrive, Bonds Recommended as Hedge Against Volatility"

BlackRock warns not all AI stocks will thrive amid rising tariff risks. Chief strategist advises active investing within AI space to navigate winners and losers. Wall Street recalibrating rate cut expectations as investors anticipate two cuts by year-end due to softer inflation data and cooling labor market.

Under-the-radar hedge in bonds like TIPS and STIP recommended by BlackRock to shield portfolios from inflation or new tariffs. Allocating to inflation-linked space suggested for portfolio addition. Expectations low for upcoming earnings season, particularly for tech and software companies, including AI names. Market sentiment steadies despite mounting risks.

Trump announces tariffs impacting 14 countries, ranging from 25% to 40%, with Aug. 1 deadline for negotiations. Active positioning advised in BlackRock’s midyear strategy to navigate market outcomes driven by policy decisions. Path for equity markets in second half may not be smooth, but some sectors expected to perform well.

Read more at Yahoo Finance: Not all AI stocks are winners, bonds could be a hedge against volatility: BlackRock Strategist