According to BlockBeats, Citigroup equity strategists have downgraded the U.S. stock market rating, citing recent developments such as DeepSeek, Europe's fiscal stance, and trade tensions as reinforcing their view on diversifying investments outside the U.S. market.
The strategists, including Beata Manthey, noted that the factors driving the 'exceptionalism' narrative are diminishing from both GDP and EPS perspectives. Citigroup has adjusted its U.S. stock market rating from overweight to neutral, highlighting that the U.S. market remains relatively expensive and that the trend of downward EPS revisions is intensifying.