(Reuters) - The BlackRock Investment Institute said on Monday that it is taking a modestly more bullish stance on U.S. stocks following the announcement of a 90-day pause in implementing most U.S. tariffs.

The near-term risk of a "financial accident" has eased following the Trump administration's decision to pause of hefty tariffs on most countries, according to a report from the research arm of asset management giant BlackRock ( BLK ).

"Policy uncertainty may weigh on growth and stocks in the near term. Yet we think the underlying economy and corporate earnings are still solid and supported by mega forces such as AI," the BlackRock ( BLK ) analysts said in the report, adding that they were overweight U.S. stocks.

Jean Boivin, head of the BlackRock Investment Institute, and his colleagues cautioned that "major uncertainty still remains" and that "ongoing risk asset volatility and potentially sharp reversals" are still likely.

The shift in view was a rapid reversal of a recommendation BlackRock ( BLK ) disclosed only a week ago, in which it shifted its view on U.S. stocks to "neutral" from overweight, citing policy uncertainties.

At the time, the firm said it based that call on its forecast that "risk assets could stay under near-term pressure until uncertainty starts to dissipate" and that "if clarity comes quickly, we would up risk-taking again."

Going forward, BlackRock ( BLK ) said its stance on risk will hinge on policy decisions regarding tariffs.

The world's largest asset management firm said last week that its total assets under management hit a record of $11.58 trillion in the first quarter of 2025.

(Reporting by Suzanne McGee; Editing by Lisa Shumaker)