Citi downgrades US stocks; risk-off and deleveraging into CPI
Citi cut US equities and tech to Neutral and turned bullish on Europe, warning the Nasdaq could fall another 5%. Traders cite deleveraging, weak sentiment and Tuesday's CPI.
What we know
An account on X reports the Citi downgrade, citing weakening AI sentiment. Another account on X expects mechanical deleveraging as indices roll over. Another account on X notes CPI is Tuesday, the last read before the Dec 9 Fed meeting. Another account on X sees SPX 7425 as the level to break. Another account on X jokes about tech's selloff.
How the story developed
Citi cut US equities and tech to Neutral and turned bullish on Europe, warning the Nasdaq could fall another 5%. Traders cite deleveraging, weak sentiment and Tuesday's CPI.
Citi cut US equities and global tech to Neutral, and HSBC cut US Treasuries to Neutral from Strong Overweight, as the tech selloff weighs on sentiment.
Compiled with AI by the Global Eye 24 desk from public posts across 5 of our monitored source feeds, and updated each hour while the story develops. Spot an error? Write to corrections@globaleye24.com.