BlackRock, Goldman CEOs bet on tech to expand US profit margins
The leaders of BlackRock and Goldman Sachs are pointing to an ongoing technological shift as the primary catalyst for expanding corporate profit margins and sustaining U.S. economic growth.
The chief executives of BlackRock and Goldman Sachs have issued near-identical bullish outlooks for U.S. markets, dismissing immediate geopolitical risks in favor of a longer-term bet on a technology-driven expansion.
Larry Fink told CNBC he is "very bullish on the markets over the next 12 months." He argued that "the technological revolution is going to power better margins for more companies." Fink pointed to BlackRock's own performance as evidence, noting that the asset manager's margins expanded by 260 basis points over the past year largely due to internal technology adoption.
David Solomon struck a similarly positive tone in a separate interview with Fox News. While acknowledging a "complex environment" shaped by Middle East tensions and a fraught relationship with China, Solomon stated that "the U.S. economy is in pretty good shape."
For market participants, the alignment of these two major financial voices underscores a shifting narrative. Rather than bracing for a slowdown, the heads of the world's largest asset manager and a top-tier investment bank are positioning for a "technology supercycle."
"We have this technology supercycle that's driving change in business and business activities… I'm a huge optimist on the U.S., with a three-, five-, seven-year view," Solomon said. He cited U.S. capital formation, entrepreneurship, and tech innovation as an "engine for real productivity gains in the coming years." "The economy is solid," he concluded.
The consensus view suggests that investors should look past current geopolitical noise. If the technology-driven margin expansion seen at BlackRock materializes across the broader corporate sector, it would provide a fundamental boost to earnings growth, validating current market valuations.
