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Stocks and risk assets will take a hit when central banks withdraw around $800 billion of stimulus, according to Citi. The fund was put Citigroup has taken a step back on U.S. stocks, cutting the asset class to neutral as strategists say valuations are still high and earnings downgrades loom. Citigroup has gone lukewarm on U.S. stocks, saying risks of a recession are not going away and megacap growth stocks could be in for a pullback. Risks including tariffs and slower-than-expected artificial-intelligence growth mean its time for investors to diversify away from the U.S, Citi strategists said Monday, as Citi analysts cut their recommendation for U.S. stocks to neutral from overweight on Monday after recession fears pummelled the market, arguing that the U.S. Citigroup lowered its rating on U.S. stocks to neutral from overweight, citing a pause in U.S. exceptionalism. The news flow from the U.S. economy is likely to Citigroup cuts U.S. stocks to neutral, saying a couple of bearish signals have been triggered for the asset class. Photo: Agence France-Presse/Getty Image. Just U.S. stocks could be headed for a summer squall, according to a Citigroup equity strategist, who rattled off a handful of reasons why markets might face a pullback in this (Bloomberg) - Equities and other risk assets will take a hit when central banks withdraw as much as $800 billion of stimulus deployed to prop up the global economy Equities and other risk assets will take a hit when central banks withdraw as much as $800 billion of stimulus deployed to prop up the global economy, according to

U.S. Stocks Face $800 Billion Dilemma: Citi Group Warns of Pullback

Are U.S. stocks headed for a correction? Citigroup is sounding the alarm, highlighting an $800 billion dilemma facing the market. According to Citi, stocks and risk assets will take a hit when central banks withdraw around $800 billion of stimulus deployed to prop up the global economy.

Citigroup has gone lukewarm on U.S. stocks, saying risks of a recession are not going away and megacap growth stocks could be in for a pullback. This shift in perspective led Citigroup to cut U.S. stocks to neutral, saying a couple of bearish signals have been triggered for the asset class. Previously, Citi rated them as overweight, indicating a more positive outlook.

Citigroup lowered its rating on U.S. stocks to neutral from overweight, citing a pause in U.S. exceptionalism. The anticipation of the Fed reducing its balance sheet is a major factor. Stocks and risk assets will take a hit when central banks withdraw as much as $800 billion of stimulus, according to Citi.

Citigroup has taken a step back on U.S. stocks, cutting the asset class to neutral as strategists say valuations are still high and earnings downgrades loom. The news flow from the U.S. economy is likely to influence this trend. This cautious stance contrasts with earlier optimism, suggesting investors should prepare for potential volatility.

Concerns extend beyond monetary policy. Risks including tariffs and slower-than-expected artificial-intelligence growth mean its time for investors to diversify away from the U.S, Citi strategists said Monday, as Citi analysts cut their recommendation for U.S. stocks to neutral from overweight on Monday after recession fears pummelled the market, arguing that the U.S. economy faces significant headwinds.

Just U.S. stocks could be headed for a summer squall, according to a Citigroup equity strategist, who rattled off a handful of reasons why markets might face a pullback. Investors should consider this revised outlook from Citi when making investment decisions.

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