BlackRock's macro research team has revealed the $8.7 trillion asset manager is continuing to favour the technology sector going into 2021.

"The pandemic has turbocharged transformations that were already underway - from sustainability to inequality. Yet markets have not fully priced in the durability of these trends, we believe, even with the glimpse into the future offered by the pandemic," BlackRock said.

"We favour technology and healthcare on a tactical horizon, as they offer both quality characteristics and are likely beneficiaries of structural growth trends."

BlackRock is of the view that the quality of the technology and healthcare equities leading the US stock market in generating earnings and revenue growth in 2020 could provide resilience against bumps during the market recovery from the COVID-19 pandemic.

A structural shift to digitization and aging societies all over the word should provide long-term growth potential for these assets, BlackRock said.

"Stock markets have hit new highs, led by the steady outperformance of tech stocks. We don't see overall equity valuations as obviously stretched, as we expect low interest rates and a vaccine-led economic restart to support risk assets over the next six to 12 months," the researchers said.

"We also see sector-specific drivers for growth. The pandemic has made the case for accelerating the shift to digital across a broad range of industries. One factor to consider: Rising production costs amid the rewiring of global."

This is part of what BlackRock views as a thematic - turbocharged transformations. The pandemic, it said has added fuel to previously existing structural trends.