BlackRock: AI will continue to dominate the stock market by 2026

BlackRock predicts AI will continue to dominate the market by 2026, but also warns of volatility risks due to increased financial leverage and speculation.

BlackRock, the world's largest asset manager, predicts that artificial intelligence (AI) will continue to dominate the market in 2026.

However, the organization also foresees a volatile road for investors, as speculative activities and the use of financial leverage increase the risk of a repeat of last month's sharp sell-off.

Helen Jewell, chief investment officer of fundamental equities for Europe, the Middle East and Africa (EMEA) at BlackRock, said on December 4 that returns from AI-related investments will continue to trend upward. However, there will be periods when the market is skeptical about valuations or the industry's prospects, causing stock volatility.

She also warned that the market will inevitably experience strong fluctuations in the coming period, which she said were mainly due to excessive capital flow into a group of stocks and the use of high financial leverage.

Hedge funds are trading with near-record leverage, raising the risk of short-term, sharp sell-offs if falling asset prices force them to liquidate to raise cash to meet lenders’ demands.

Ms. Jewell said she is increasing her holdings in European energy and power infrastructure companies, such as Siemens Energy.

The reason is that the explosion of AI and the race to build new data centers has driven demand for turbines, grid technology and clean energy.

Speaking separately at a panel discussion, Ms. Jewell said BlackRock remains positive on defense stocks, but is no longer as optimistic as at the beginning of the year.

European aerospace and defense stocks fell 8% in November, the biggest decline since June 2024, amid growing speculation about a potential peace deal between Russia and Ukraine./.

(TTXVN/Vietnam+)

Source: https://www.vietnamplus.vn/blackrock-ai-se-tiep-tuc-thong-tri-thi-truong-chung-khoan-nam-2026-post1081107.vnp