BlackRock favors US equities amid AI financing and government borrowing tension

BlackRock’s recent commentary has highlighted a growing tension in the capital markets as AI financing demands increase amidst substantial government borrowing. According to Vivek Paul, Global Head of Portfolio Research at BlackRock, this competition for capital has not deterred the firm from maintaining a pro-risk stance, favoring U.S. equities while remaining selective with bonds. The firm has specifically indicated a preference for shorter-term government debt over long-duration Treasuries. This strategy is reflective of the broader market dynamics where AI-related capital spending is becoming significant enough to influence bond issuance and yields. Market analysis suggests that this environment, characterized by increased demand for high-risk assets, may have implications for Bitcoin pricing. The current market odds for Bitcoin being less than $66,000 on September 23, 2026, are at a mere 0.1% YES, indicating strong confidence among participants that Bitcoin will exceed this level. The focus on risk assets appears consistent with a scenario supportive of higher Bitcoin valuations. Key Takeaways BlackRock’s pro-risk stance appears to support U.S. equities over long-duration Trea...