Citi downgrades U.S. stocks, sees S&P 500 pull back 9% to 4,000

  • 📰 CNBC
  • ⏱ Reading Time:
  • 24 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 72%

United States News News

United States United States Latest News,United States United States Headlines

Strategists at Citi downgraded U.S. equities after a strong first half of 2023, saying an economic slowdown will weigh on company earnings.

The Wall Street firm slashed the rating to neutral from overweight on Monday, and said the S & P 500 will pull back 9% to end the year at 4,000. The equity benchmark closed Friday's session at 4,398.95. "After a solid 1H, US outperformance may go on pause," Citi strategists said in a note. "Our US Strategy team thinks megacap Growth is set for a pullback, while US recession risks could still bite.

Citi said the run-up in artificial intelligence related stocks could be overdone. Meanwhile, other headwinds could put pressure on the market, including a potential recession and waning inflows into equities. "Growth may be set for a pullback as AI euphoria enters a digestive phase. Recession risks remains elevated. Volatility tends to rise after a sharp fall in market breadth. Global inflows boosting the Japanese equities should peak soon," Citi said.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in US

United States United States Latest News, United States United States Headlines