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14-04-2025, 03:10 PM
Citi has downgraded U.S. equities to Neutral from Overweight, reflecting the current uncertainty in the macroeconomic outlook, elevated valuations, and mounting earnings downgrade pressures.
While some tariff-related risks have been priced out following President Donald Trump’s 90-day pause on trade restrictions, Citi believes the U.S. remains vulnerable to further economic drag.
“Tariffs, as they stand, could negatively impact U.S. earnings per share (EPS) the most,” the analysts wrote in a note titled "New World Order," highlighting that the U.S. market is still trading at roughly the 80th percentile valuation multiple versus history.
While some tariff-related risks have been priced out following President Donald Trump’s 90-day pause on trade restrictions, Citi believes the U.S. remains vulnerable to further economic drag.
“Tariffs, as they stand, could negatively impact U.S. earnings per share (EPS) the most,” the analysts wrote in a note titled "New World Order," highlighting that the U.S. market is still trading at roughly the 80th percentile valuation multiple versus history.
