BlackRock Upgrades U.S. Equities to Overweight, Cites Contained War Risk and Strong Corporate Earnings

BlackRock (BLK), the world's largest asset manager with $14 trillion under management, upgraded U.S. equities from Neutral to Overweight on April 13, citing manageable geopolitical fallout from the Iran conflict and resilient corporate earnings momentum. The firm identified two key signals driving the risk-on shift: a potential resumption of normal shipping traffic through the Strait of Hormuz and limited macroeconomic damage from the conflict, which erupted Feb. 28. BlackRock noted that 2026 earnings estimates for both U.S. and emerging market companies have risen — not fallen — since hostilities began. FactSet projects S&P 500 Q1 earnings growth at 12.6%, potentially expanding to ~19% if historical beat rates hold. Technology sector profits are forecast to surge 45% for the full year, yet the sector's stock price gains remain modest, pushing IT valuations to their lowest relative levels since mid-2020. BlackRock strategists are maintaining Overweight ratings exclusively on U.S. and emerging market equities, while favoring structural growth themes including defense.