BlackRock’s Jeff Shen, remains constructive on U.S. equities over the next six-to-12 months, but he said investors may find more compelling opportunities overseas as global markets play catch-up. “There’s a fundamental capital expenditure story, given the excitement around artificial intelligence and the potential productivity growth coming from this investment,” said Shen, co-chief investment officer and co-head of systematic equities at BlackRock, in an interview on the sidelines of the Sohn Investment conference in San Francisco. The S & P 500 has rebounded aggressively from its April lows to score consecutive record highs, bringing its 2025 gains to more than 17%. U.S. The powerful rally has been fueled by optimism over artificial intelligence and expectations for rate cuts, but questions have emerged over whether the advance can be sustained and if markets are entering a late stage of the cycle, with valuations stretched and growth momentum moderating. .SPX YTD mountain S & P 500 year to date Shen sees room for U.S. stocks to grind higher, citing supportive policy, a pickup in capital investment and signs of easing geopolitical tensions. Still, he noted that much of the good news may already be reflected in valuations in the U.S. “The market is pricing in a pretty accommodative financial condition on a forward-looking basis,” he said. “Some of that optimism is probably already priced in, especially with U.S. assets.” Shen pointed to international markets — from Europe to Asia — as potential beneficiaries of the global easing cycle and the broader AI-driven investment boom. “International markets may very well be a good place to take a close look,” he said. “They could offer some of the more interesting opportunities ahead.” Europe’s Stoxx 600 is up 13.4% year to date. In Asia, the Shanghai Composite has jumped 19.8%, while the Nikkei 225 has soared 28.6%.
