Citi Turns Neutral on U.S. Stocks and Tech, Overweights European Stocks Outside U.K.

Citi moved its ratings on U.S. equities, global technology stocks and European technology stocks to neutral on Nov. 9, while raising European equities outside the U.K. to overweight.

The bank warned that the Nasdaq could fall another 5% before investor positioning turns decisively bearish. Citi remains constructive on artificial intelligence over the medium term but wants market sentiment and earnings expectations to stabilize before turning bullish again.

Citi’s more favorable view of European equities outside the U.K. reflects the region’s lower technology exposure and potential benefit from falling oil prices.