BlackRock Keeps U.S. Equities Overweight as AI Funding Demand Rises
Annual U.S. financing demand could approach $8 trillion by 2030, while AI and data-center bonds reached 14% of investment-grade issuance in 2026.
Heavy government borrowing and rising artificial-intelligence investment are intensifying competition for capital, a dynamic that could keep U.S. borrowing costs elevated while supporting BlackRock’s preference for equities and shorter-term bonds.
Annual U.S. financing demand could approach $8 trillion by 2030 as AI infrastructure investment grows. AI and data-center bonds represented about 14% of U.S. investment-grade issuance in 2026, compared with 5% in 2025 and 1% during the previous decade.
BlackRock remains overweight U.S. equities and AI-related opportunities. The view reflects resilient corporate earnings and the ability of companies with strong balance sheets to absorb higher financing costs.
Its Q4 2026 outlook, dated Sept. 15, also maintained an overweight view on U.S. equities and a preference for short-term bonds. The broader positioning favors short- to medium-term government bonds over longer-term government bonds because longer-duration securities are more sensitive to interest-rate changes.
The 10-year Treasury yield had crossed 5% after the Federal Reserve raised rates. Higher yields can increase financing costs and weigh more heavily on longer-duration government bonds.
The outlook separates BlackRock’s equity view from its bond-duration stance. It remains constructive on companies with strong earnings and balance sheets while expressing caution toward longer-term government bonds as public borrowing and AI-related financing demand compete for capital.
The commentary does not provide a specific forecast for Bitcoin (BTC) or describe a measurable shift in crypto capital flows.
