Overview

• Citi has downgraded its recommendation for U.S. equities from 'overweight' to 'neutral,' marking the first such change since October 2023.
• Chinese stocks have been upgraded to 'overweight,' driven by advancements in artificial intelligence, favorable government policies, and attractive valuations.
• U.S. markets experienced significant losses, with the Nasdaq 100 dropping nearly 4% and erasing $1.1 trillion in value, the largest single-day loss since 2022.
• Analysts predict U.S. economic growth will lag behind other global markets in the coming months, softening the narrative of 'U.S. exceptionalism.'
• China's tech sector is seen as undervalued compared to global peers, with potential for further growth tied to AI investments and possible trade policy resolutions.