Rick Rieder expresses confidence in equities

BlackRock's Rick Rieder expresses strong confidence in the stock market's potential for growth due to AI.

Rick Rieder's optimism for equities driven by AI and inflation

Chicago — BlackRock's Rick Rieder believes the stock market, close to its all-time highs, will rise even higher in the latter half of 2025. He attributes this optimism to declining inflation, influenced by advancements in artificial intelligence. During a keynote at the Morningstar Investment Conference, Rieder remarked, "I think it's the greatest technology revolution ever," asserting that productivity from AI will help control inflation, even amid pressures like tariffs. He expects the U.S. economy to remain resilient, focusing on services rather than goods for growth. Rieder noted the S&P 500 is just below its record high and believes equities will withstand existing economic challenges, including geopolitical tensions and dollar pressures. He also commented on investors' shifting focus towards U.S. equities, stating, "there's no other game in town."

Rieder's perspective sheds light on the growing influence of technology, particularly AI, on market dynamics. As inflation trends downward, the potential for increased productivity suggests a buoyant outlook for equities. While some investors may have reservations about monetary policy and potential Fed rate cuts, Rieder's confidence may inspire a shift towards equities, especially in a market where U.S. options seem limited. This sentiment could gradually shape investor behavior and market trends in the approaching months.

Highlights

The evolving landscape of technology may continue to redefine market expectations.