FILE PHOTO: The BlackRock logo is seen at the BlackRock Japan headquarters in Tokyo, Japan, October 20, 2016. REUTERS/Toru Hanai/File Photo

NEW YORK (Reuters) - BlackRock Inc’s Investment Institute said on Tuesday that the swoon in stock markets is “contained” and that it sees an opportunity to take on more risk, particularly in emerging market equities.

The recent pullback “appeared to stem from investor jitters over the stock market run-up, record equity inflows and rapidly increasing interest rates,” exacerbated by products betting against rising U.S. equity volatility, BlackRock said.

A real change in markets would require a deterioration in the economy, but BlackRock anticipates global growth to continue in 2018, the company’s Investment Institute said in a note. The group includes investors and strategists from around BlackRock, which manages $6 trillion in assets.

Markets that had been calm roared to life in recent days, and on Tuesday indexes rebounded from the biggest one-day drops for the S&P 500 and the Dow Jones Industrial Average in more than six years that stalled the market’s record run.

Still, BlackRock said the low-volatility era for markets may not be over.

BlackRock’s strategists had expressed a “neutral” position in U.S. stocks before the selloff, and even their reaffirmed endorsement of equities over bonds on Tuesday included the caveat that they feel the best opportunities are outside the world’s largest economy, in emerging markets.