BlackRock Reallocates $185B into US Stocks and AI, Signaling Strong Earnings Confidence

BlackRock executed a rapid rebalancing of $185 billion in model portfolios, shifting aggressively toward US equities and AI-themed investments. The MOVE resulted in historic single-day flows for several iShares ETFs, with OEF absorbing $3.4 billion and IVV collecting $2.3 billion on Tuesday.

The firm now holds a 2% overweight position in stocks, citing 11% US earnings growth since Q3 2024—a stark contrast to the 2% growth in other developed markets. "The US equity market stands alone in earnings delivery and sales growth," said Michael Gates of BlackRock's Target Allocation team, justifying the divestment from international holdings.

This realignment reflects institutional conviction in the S&P 500's rally, fueled by robust corporate performance and anticipated Fed rate cuts. The flows demonstrate how macroeconomic outlooks now dictate lightning-fast capital rotations among mega-cap ETFs.