Despite current market resilience, some banks warn of potential rapid deterioration due to ongoing trade tensions and supply chain disruptions. BlackRock has highlighted that U.S.-China trade tensions could trigger a supply-driven economic contraction. The impact of tariffs, amounting to $950 billion, poses a significant challenge to America’s interconnected economic sphere. While markets remain buoyant, concerns persist about the long-term effects of these tensions on global supply chains, potentially leading to economic contraction. Meanwhile, BlackRock maintains an overweight position on U.S. stocks, attributing this stance partly to the ongoing AI investment theme.
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