BLK

The U.S. bank earnings season supports the pace of the broad market's recovery. As an example, The Bank of America (BAC) stock added more than 4% to its value on April 15 after the major American lending institution reported a solid net interest quarterly income in Q1 the first quarter, based on tariff-driven volatility, which occurred due to large asset trading volume at the bank's global unit. Meanwhile, shares of Citigroup (C) rose as much as 2.88% during the first two hours of the regular session on the same day, also on higher-than-feared Q1 results. Citigroup CEOs cited volatility-driven upticks in equities trading revenue as well.

At the same time, Citi’s strategists led by Chris Montagu warned about possible losses in the further S&P 500 dynamics, as recent equity flows were "led by short covering" and still could be limited by the lack of evidence of fresh long positioning. A 90-day pause on Trump's "reciprocal" tariffs has made a strong rebound in many stock names, but many large funds are lowering their re-estimates for the S&P 500 to the range of 5,500 to 5,900 for this year's outlook, from 6,500 to 6,800 before, based on elvated uncertainty. "The only certainty is that market participants will be forced to endure a period of extended market uncertainty," Citi strategists noted during a conference call.

Meanwhile, the BlackRock (BLK) reputable and very big Investment Institute with nearly $140 billion of market caps has recovered from April's low around $775 to $900 already and said it took a "modestly more bullish" stance on U.S. stocks. Blackrock feels the near-term risk of a "financial accident" has eased after the decision to halt hefty tariffs on most countries except China. The "underlying" economy and corporate earnings are still solid, supported by mega forces such as AI, while most U.S. stocks are overweight, according to BlackRock's report this Monday. This represented a change in view compared to BlackRock's disclosed recommendations only a week ago, where they recognized U.S. stocks as "neutral", and now shifting to a more positive "overweight" stance. Some "risk assets" could stay under near-term pressure, they added, until uncertainty clarifies, but then "we would up risk-taking again".

As we mostly agree with their assessments, considering them the most adequate of those published in the last couple of weeks, and Blackrock's total assets under management just hit a record of $11.58 trillion in the first quarter of 2025, we may expect a gradual ascent of BlackRock shares to $1000 per unit in the coming months.

What is remarkable is that Cathie Wood, the founder and CEO of ARK Invest, which raised speedily exactly on most volatile stages of crypto and other market moves in previous years, also said she sees potential benefits from Trump's tariff policy that may not be immediately apparent. The situation could provide the White House and even the Federal Reserve to be more flexible in stimulating the economy, giving stronger signals for tax cuts, deregulation, and lower interest rates. These same considerations are driving us to dream big, concerning the S&P 500 index to touch levels well above 6,000 in the second half of this year.