According to BlackRock’s Rick Rieder, equities are currently benefiting from exceptional technicals amidst recent all-time highs.
During a recent interview with Bloomberg Television, Rieder, the chief investment officer (CIO) of global fixed income at the financial giant, discussed the factors driving the recent market rally.
“The technical indicators in the equity market are outstanding, and the earnings reports are quite strong. When we look at the US economy, the main drivers are performing well. The tech sector and the earnings growth are particularly impressive. For example, some semiconductor companies have shown a 97% year-on-year earnings growth, which is incredibly robust.”
“Additionally, the high-end consumer spending is noteworthy. Retail sales, upon closer examination, are performing very well.”
Rieder highlights the positive earnings results occurring during a period when there was limited interest in buying stocks.
“We are expected to repurchase $1 trillion worth of stock this year. In fact, there may not be enough stock available for purchase.”
At the time of writing, the S&P 500 is valued at 7,099.35, having reached a new all-time intraday high of 7,147.52 on Friday. While the leading equity index is down 0.37% on Monday, it has risen by 2.74% in the past five days and 9.11% in the past month.
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