Citi says S&P 500 will retreat to 4,000, claiming it isn't fully a bull market yet

Per CNBC

While some financial institutions, banks, and economists are watching out for a bull run, Citi says otherwise and that we aren't fully in a bull market yet. This comes as the bank reportedly believes that the market would return to 4,000.

Citi also shared about the involvement of AI in the market and how the "Fed hiking cycle" was ending. It was also noted that the market could go back to neutral but did give emphasis on how the tech sector was specifically strong.

Citi: “With the end of the Fed hiking cycle upon us, and the AI story probably with further legs, we move our US equity underweight back to neutral, and the technology sector to an overweight.”

This comes as Goldman Sachs reportedly said that they were increasing their S&P 500 expectations to 4,500 at the end of the year from its initial 4,000. David Kostin, Goldman Sachs's chief US equity strategist, gave a statement regarding their expectations.

Kostin: “We are raising Goldman’s S&P 500 year-end price target to 4500 from 4000, representing 5% upside from the current 4299 level.”

This was reportedly far from Citigroup's plan in September 2022, when they planned to scale back lending to asset managers with books estimated to drop from $65 billion to just $20 billion. The information reportedly came from people that were familiar with the matter, but Citi didn't give a comment during that time.

The decision reportedly came after Citi, Bank of America, and JPMorgan were designated as global, systematically important banks. This resulted in Citi being required to hold more capital than its risk-weighed assets.

At the start of the year, Citigroup reportedly dropped its 2023 worldwide recession probability to 30%, down from its original 50%. Previously, their economists thought that the probability of a worldwide recession was at 50-50.

See flow at unusualwhales.com/flow.

Other News:

Resources:

CNBC

tastytrade logo+
Get the best broker for options trading and earn Unusual Whales discounted! in cash with an eligible account deposit at tastytrade. Get an Unusual Whales bonus when you deposit $2000. Offer expires 3/31/25. Certain restrictions, terms and conditions apply.
Unusual Whales does not confirm the information's truthfulness or accuracy of the associated references, data, and cannot verify any of the information. Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Options, investing, trading is risky, and losses are more expected than profits. Please do own research before investing. Please only subscribe after reading our full terms and understanding options and the market, and the inherent risks of trading. It is highly recommended not to trade on this, or any, information from Unusual Whales. Markets are risky, and you will likely lose some or all of your capital. Please check our terms for full details.
Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Certain investment planning tools available on Unusual Whales may provide general investment education based on your input. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation. See terms for more information.