BlackRock warns of US earnings stagnation, remains bullish on AI, Japan

Investors looking toward U.S. corporate earnings growth to revive the rally in the benchmark S&P 500 may be disappointed as inflation remains volatile, strategists at the BlackRock Investment Institute warned in a note Monday. The S&P 500 is down nearly 8% from its July highs as a selloff in Treasuries has pushed yields near 16-year highs, sapping investor enthusiasm for equities. "Broad equities have started to adjust to the new regime of greater volatility, but don’t fully reflect the macro damage we expect."