BlackRock's Rieder Talks Jobs Report, AI and Markets

BlackRock Fixed Income CIO Rick Rieder says May's solid US payrolls — including about 50,000 local government hires and strength in nonresidential construction — reinforce a stronger economic backdrop that should be factored into positioning. He notes large money-market inflows and abundant cash supporting demand for both fixed income (pensions, insurers) and equities (buybacks limiting net supply), while equity-index volatility has fallen. Rieder says BlackRock has trimmed rate/duration exposure, prefers parts of European fixed income and selectively likes Japanese equities and certain data‑center related issuance, and views private credit redemptions as largely idiosyncratic rather than systemic. He warns inflation remains above target so the Fed is unlikely to cut soon and policymakers must weigh rate-tool effectiveness across sectors. Market impacts: sustained demand for yield, potential pressure from upcoming Treasury and corporate supply, and continued equity resilience amid concentrated technology/AI-driven gains.