Solid US growth and Fed rate cuts are supporting earnings momentum, reinforcing BlackRock’s overweight on US equities as they expect Q4 results to show a narrowing gap beyond the “Magnificent Seven,” cyclical sector support from structural forces, and AI-driven productivity gains offsetting typical downgrades.

The week ahead is packed with key US inflation data, central bank communications and major earnings, against a backdrop of fragile market sentiment driven by softer US labour data, shifting Fed expectations, geopolitical uncertainty, and mixed global economic signals, while China’s data point to firmer inflation but lingering deflationary pressures.