Citigroup issued a major warning:
The latest major report shocked the market, announcing that the end-of-year target of the S&P 500 index will be significantly lowered from 6,500 points to 5,800 points, a drop of 10.8%. This is another Wall Street giant that has issued a warning about the outlook for US stocks after Goldman Sachs and Bank of America. Citigroup also downgraded the US stock rating from "overweight" to "neutral" and bluntly stated that "the myth of US corporate earnings is being shattered." This series of bearish actions indicates that Wall Street's attitude towards US stocks is undergoing a fundamental change.
Tariff "nuclear bomb" is coming, and corporate earnings have been comprehensively lowered
Citigroup analysts clearly pointed out in the report that the Trump administration's policy of imposing tariffs will become a "nuclear weapon" to hit corporate profits. The bank lowered its earnings per share (EPS) forecast for the S&P 500 index from $270 to $255, a drop of 5.6%. The report specifically emphasizes: "The current tariff policy will have the greatest impact on US corporate profits." What is more worrying is that Citi believes that the market has not fully priced in this risk and may face more severe valuation compression in the future.
"American Exceptionalism" is disillusioned, and funds are starting to move around the world
With the slowdown in GDP growth and weak profit growth, funds are withdrawing from US stocks on a large scale. In sharp contrast, Citi upgraded the Japanese stock market rating from "underweight" to "overweight", showing that Wall Street is re-arranging global asset allocation. Analysts warned that this large transfer of funds may have just begun, and the selling pressure on US stocks will continue to intensify.
Sector allocation reshuffle, defensive strategy becomes mainstream
While looking down on US stocks overall, Citi also gave investment advice under the crisis: technology stocks are preferred in the growth sector, financial stocks are optimistic about the cyclical sector, and healthcare stocks are recommended in the defensive sector. This allocation strategy reflects that institutional investors are turning to a more conservative investment style. It is worth noting that Citi downgraded the rating of emerging market stocks from "neutral" to "underweight", indicating that global risk assets may face a systematic revaluation.
Summary: The calm before the storm, investors need to fasten their seat belts
This report is like a wake-up call, indicating that the US stock market may usher in a deep adjustment. Under the triple pressure of tariff shocks, earnings downgrades and valuation compression, the years-long bull market in the US stock market is facing the most severe test. As Wall Street banks collectively turn bearish, retail investors need to be more vigilant about the risk of drastic market fluctuations.
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The latest major report shocked the market, announcing that the end-of-year target of the S&P 500 index will be significantly lowered from 6,500 points to 5,800 points, a drop of 10.8%. This is another Wall Street giant that has issued a warning about the outlook for US stocks after Goldman Sachs and Bank of America. Citigroup also downgraded the US stock rating from "overweight" to "neutral" and bluntly stated that "the myth of US corporate earnings is being shattered." This series of bearish actions indicates that Wall Street's attitude towards US stocks is undergoing a fundamental change.
Tariff "nuclear bomb" is coming, and corporate earnings have been comprehensively lowered
Citigroup analysts clearly pointed out in the report that the Trump administration's policy of imposing tariffs will become a "nuclear weapon" to hit corporate profits. The bank lowered its earnings per share (EPS) forecast for the S&P 500 index from $270 to $255, a drop of 5.6%. The report specifically emphasizes: "The current tariff policy will have the greatest impact on US corporate profits." What is more worrying is that Citi believes that the market has not fully priced in this risk and may face more severe valuation compression in the future.
"American Exceptionalism" is disillusioned, and funds are starting to move around the world
With the slowdown in GDP growth and weak profit growth, funds are withdrawing from US stocks on a large scale. In sharp contrast, Citi upgraded the Japanese stock market rating from "underweight" to "overweight", showing that Wall Street is re-arranging global asset allocation. Analysts warned that this large transfer of funds may have just begun, and the selling pressure on US stocks will continue to intensify.
Sector allocation reshuffle, defensive strategy becomes mainstream
While looking down on US stocks overall, Citi also gave investment advice under the crisis: technology stocks are preferred in the growth sector, financial stocks are optimistic about the cyclical sector, and healthcare stocks are recommended in the defensive sector. This allocation strategy reflects that institutional investors are turning to a more conservative investment style. It is worth noting that Citi downgraded the rating of emerging market stocks from "neutral" to "underweight", indicating that global risk assets may face a systematic revaluation.
Summary: The calm before the storm, investors need to fasten their seat belts
This report is like a wake-up call, indicating that the US stock market may usher in a deep adjustment. Under the triple pressure of tariff shocks, earnings downgrades and valuation compression, the years-long bull market in the US stock market is facing the most severe test. As Wall Street banks collectively turn bearish, retail investors need to be more vigilant about the risk of drastic market fluctuations.
XAUUSD GOLD XAUUSD XAUUSD GOLD XAUUSD BTCUSD BTCUSD BTCUSD BTCUSDT BTCUSDT.P BTCUSDT.P USOIL USOIL USOIL 
🎁Stable weekly profit exceeds 259.7%🎁Win rate is as high as 98.83%,✔Copy accurate trading signals✔Account management. Real-time communication: t.me/cryptoanalyst_baker
Signal entry: t.me/FcCygjylf
Signal entry: t.me/FcCygjylf
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
🎁Stable weekly profit exceeds 259.7%🎁Win rate is as high as 98.83%,✔Copy accurate trading signals✔Account management. Real-time communication: t.me/cryptoanalyst_baker
Signal entry: t.me/FcCygjylf
Signal entry: t.me/FcCygjylf
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.