Stocks will once again find their footing and recover from a global market sell-off as recession worries abates and the unwinding of the yen carry trade settles, according to BlackRock.

&ldquo We think risk assets can recover as recession fears ease and the rapid unwinding of carry trades stabilizes,&rdquo the firm&rsquo s Investment Institute wrote said. &ldquo We keep our overweight to U.S. equities, driven by the AI mega force, and see the selloff presenting buying opportunities.

&ldquo We think growth will be supportive of risk assets and believe markets are pricing in too many Fed rate cuts,&rdquo the note added. The firm also posits that the recent weaker-than-expected jobs report that preceded the Friday market sell-off more closely resembles a slowdown in hiring as opposed to a recession.

BlackRock added that the main driving force behind the rise in the unemployment is an uptick in labor supply due to immigration as opposed to layoffs, which is a key difference compared to previous recessions.