Posted 4/2/2024, 3:17:32 PM
Citi Downgrades Tech Sector, Upgrades Consumer Stocks on View of Market Rotation Toward Rate-Sensitive Areas
- Citi downgraded tech sector to market weight, upgraded consumer discretionary to overweight
- Market evolving away from tech/cyclical leadership, toward sectors that could benefit from eventual Fed pivot
- Upgraded view on consumer discretionary, including retail, durables, consumer services
- Recent data questions timing of first Fed rate cut, market digesting gains predicated on soft landing expectations
- Citi thinks data gives Fed decent basis to gradually lessen degree of restrictiveness