(Reuters) -BlackRock's assets under management hit a new high in the second quarter as global markets rallied on the prospect of trade deals and rate cuts from the U.S. Federal Reserve, brushing aside earlier tariff-related jitters.

A robust labor market, a healthy consumer and hopes that President Donald Trump would ease some of his harsher trade measures pushed major U.S. indices to all-time highs through the end of June.

That marked a sharp reversal from early April, when tumult in U.S. trade and geopolitical policy battered confidence and fueled recession fears, concerns that BlackRock CEO Larry Fink echoed at the time.

The benchmark S&P 500 index rose 10.57% in the second quarter of 2025 after escaping bear market territory.

BlackRock's assets under management rose to $12.53 trillion in the quarter ended June 30, from $10.65 trillion last year. However, long-term net inflows fell to $46 billion in the quarter, down 9.8%.

Its total revenue - most of which is earned as a percentage of assets under management - rose to $5.42 billion from $4.81 billion a year ago.

Adjusted profit came in at $1.88 billion, or $12.05 per share, for the three months ended June 30, up from $1.55 billion, or $10.36 per share, a year earlier.