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Citi and BlackRock Turn Overweight on U.S. Stocks as Earnings Resilience Lifts Confidence

Technology-led earnings growth underpins the tactical shift.

Overview

  • Citigroup raised U.S. equities to Overweight from Neutral, joining BlackRock’s new overweight stance on the asset class.
  • BlackRock said it moved back into risk assets after signs of efforts to reopen the Strait of Hormuz and evidence the conflict’s economic hit would be limited.
  • Citi said about half of expected global earnings growth in 2026 will come from technology, with reports pointing to a 45% jump in sector profits this year.
  • The S&P 500 has climbed roughly 9% from a seven-month low as fears of an oil-driven inflation shock eased.
  • Citi cut emerging markets to Neutral but lifted its year-end MSCI EM target to 1,770, citing vulnerability to energy shortages and pressure from a stronger dollar.