Citi is turning more bullish on U.S. stocks heading into the end of 2023. The firm moved U.S. equities to a tactical overweight rating in a Wednesday note, underpinned by seasonality, stable interest rates and positive earnings growth. "We have made a case for some time that the seasonals should not be ignored into year-end, especially if the S & P had a solid year until the end of October," Dirk Willer, head of emerging market strategy at Citi Research, said.
stocks on Wednesday after the Federal Reserve held rates steady for a second-consecutive month. Wall Street took the news as a potential signal that the central bank could be near the end of its rate hike cycle, despite Fed Chair Jerome Powell remaining steadfast that the effort to tame inflation has "a long way to go." To be sure, Willer cautions that Citi maintains a recession forecast for the U.S.