BlackRock: 'What's Driving US Stocks? Irony.'

After a week of unpredictability in the U.S. stock market, the situations for U.S. stocks seems to have calmed down for the moment, as per an

by Russ Koesterich,

chief investment strategist. As Koesterich states, the stocks "ended on the upside last week, though the rally was more a function of slow growth rather than a booming economy." Overall, apart from the labor market, local economic data are below expectations. So much so that the Bloomberg ECO U.S. Surprise Index, which measures whether the data beats or misses estimates, is at its lowest level since 2009. Related Link:

For Jack Ablin, chief investment officer of BMO Private Bank in Chicago, observing surprise indexes helps gauge "when a particular national economy may be turning and looks for good value in equities," reported

earlier this month. Meanwhile, Koesterich says that instead of partaking in selling, "investors are taking solace in the fact that low inflation and the moderating economic growth may lead the [Fed] to increase interest rates at a slower, gentler pace." Koesterich says that although last week the central bank somewhat gave way to a normalization in interest rates for later in 2015, "its recognition of the recent economic softness was interpreted as a dovish stance." He adds, "Treasuries rallied on the announcement, with the yield on the 10-year Treasury dipping back below 2%, as equities swung from a loss to a 1% gain." Russ ends his opinion with one last warning, "While U.S. stocks have managed to advance so far this year, the volatility of daily returns is already 25% higher than it was last year. Expect a continued bumpy ride in the months ahead."