BlackRock analysts said in a report this week that while uncertainty remains and policy making continues to roil markets, their portfolio managers are “focused intently on how and where to capture opportunities.”

The company revealed this was a key takeaway from their recent internal mid-year forum.

Last week, U.S. stocks rallied amid the resumption of U.S.-China trade talks and a strong U.S. jobs report.

However, BlackRock (NYSE: BLK ) noted that it is “too early to tell whether tariffs are hurting the labor market.”

The firm is closely watching U.S. CPI data to determine whether tariffs are driving inflation and is concerned that “persistent inflationary pressures limit the Fed’s room to cut interest rates this year.”

BlackRock stressed that policy making has become a source of disruption rather than stability, with U.S. inflation more stubborn and public debt ballooning.

This leaves governments and central banks with less room to maneuver, making the “macro outlook less predictable”.

Despite this volatility, BlackRock’s managers seek out opportunities by “looking through the short-term noise and focusing on the big picture.”

They agreed that the drivers of stock returns for the best-performing companies “haven’t really changed all that much.”

Among those opportunities is a “shared belief in the superpower of artificial intelligence driving further returns,” with Nvidia’s (NASDAQ: NVDA ) recent earnings beat cited as an example, despite tariff-related drags.

However, they also noted “medium-term regulatory risks and the potential for slower deployment.” Energy was another favored sector, with artificial intelligence driving global energy demand and governments prioritizing “indigenous, reliable energy sources.”