Citigroup downgrades US equities to 'neutral' on AI concerns

Citigroup strategists downgraded US equities ​to "neutral" from "overweight," saying they ​were looking for cleaner positioning ‌and more ​stable sentiment around AI stocks after a sharp selloff on concerns about soaring ‌AI spending and tougher regulation.

"We worry that positioning on key indices, such as the Nasdaq, could reset lower into net-short territory," Citigroup strategists ‌led by Beata Manthey said in a note on ‌Monday.