Citi strategists downgraded US stocks and tech amid AI turmoil following the US midterm elections, while upgrading European equities for their lower AI exposure and falling oil prices. The S&P 500 suffered its biggest weekly drop since April 2025, wiping $2.3 trillion from the Nasdaq 100. Europe's Stoxx 600 rose 0.2% as investors sought diversification.
Goldman Sachs noted Europe's reduced AI reliance (15% of Stoxx 600) versus the S&P 500 (40%) has historically led to better performance during AI selloffs. Citi maintains positive 2027 targets on resilient data and easing risks.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing