Under the banner of HSBC, downgraded the ratings of U.S. stocks and global tech stocks to neutral, upgraded European stocks to overweight

According to a report by Investing.com, Citigroup has downgraded its rating on U.S. stocks, global tech stocks, and European tech stocks from "overweight" to "neutral," citing that investor positions may further decline, while upgrading European stocks (excluding the UK) to "overweight."

Citigroup stated that market sentiment around AI has significantly weakened, partly due to the midterm election results raising questions about the long-term trajectory of AI spending; the Nasdaq position may shift from neutral to net short, needing to drop about 5% before it truly turns negative.

Citigroup remains optimistic about AI in the medium term but will wait for positions to clear and AI sentiment to stabilize before restoring the overweight rating.