Morningstar and Bloomberg as of 6/30/26. U.S. stocks represented by the S&P 500 Index. AI companies were identified using an objective holdings-based screen: S&P 500 constituents were classified as ‘AI’ if, as of June 30th, 2026, they were held in at least one of the five largest (by AUM) U.S.-listed AI-themed ETFs, selected based on stated AI-focused investment objectives/strategy. The resulting AI basket includes 51 S&P 500 companies. Energy represents S&P 500 companies in the GICS Energy Sector. Everything Else represents the S&P 500 excluding the AI-classified and Energy constituents. ETF selection and constituent classification are rules-based and do not reflect BlackRock’s view of any company’s current or future AI revenue, business exposure, or prospects. Index performance is for illustrative purposes only. Index performance does not reflect any management fees or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
Markets benefit from easing geopolitical tensions, accelerating AI investment and hardware shortages. We remain constructive on AI equities as a driver of U.S. earnings growth.
Strong rallies can bring elevated volatility. Diversify with buffer strategies seeking to help reduce downside risk and alternatives to add differentiated sources of potential return.
A hawkish Fed has kept bond yields elevated. Today's higher yields can continue to create attractive income opportunities for fixed income investors.
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Student of the Market is a BlackRock monthly market commentary series that helps advisors and investors interpret current market conditions through historical trend review, economic analysis, and portfolio insights.
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Advisors can help clients navigate market volatility by focusing on long-term investment goals, diversification, historical market recoveries and disciplined portfolio positioning rather than reacting to short-term headlines.
Historical market trends can help investors understand how markets have responded to inflation, elections, recessions, geopolitical events, and volatility over time, providing context for current investment decisions.
Carefully consider the Funds within the model portfolios' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
Actively managed funds do not seek to replicate the performance of a specified index, may have higher portfolio turnover, and may charge higher fees than index funds due to increased trading and research expenses. There is no guarantee that an active fund will meet its investment objective.
A fund's use of derivatives may reduce a fund's returns and/or increase volatility and subject the fund to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation. A fund could suffer losses related to its derivative positions because of a possible lack of liquidity in the secondary market and as a result of unanticipated market movements, which losses are potentially unlimited. There can be no assurance that any fund's hedging transactions will be effective.
Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in the value of debt securities. Credit risk refers to the possibility that the debt issuer will not be able to make principal and interest payments.
AI technology relies on large data sets, which can lead to inaccuracies. Companies in AI face competition, rapid obsolescence, and depend on demand from various industries. Regulatory scrutiny could limit AI development, with data collection facing closer examination and potential fines. Country-specific regulations could also impact AI and big data companies.
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