Citi cuts US equities and global tech to neutral, citing AI sentiment and positioning after the selloff
Strategists led by Beata Manthey moved both from overweight and warned Nasdaq positioning could turn net short; Citi upgraded European stocks excluding the UK.
Why it matters
A large bank cutting its US call on AI grounds marks a shift from treating the AI selloff as a dip to buy. Citi says it remains constructive on AI over the medium term but wants cleaner positioning and steadier sentiment before going overweight again. Reuters links the move to concerns about AI spending and tighter regulation after Democratic midterm gains. Watch whether other banks follow and whether Nasdaq positioning does turn net short.
Key facts
- US equities cut to neutral from overweight
- Global and European tech cut to neutral
- European stocks excluding UK raised to overweight
- Global Health Care raised to overweight
- Strategy team led by Beata Manthey