Citi: Stock Market Rally Has Room to Broaden
Citi strategists said there are early signs that the stock-market rally is beginning to broaden beyond a handful of artificial-intelligence stocks as the cyclical backdrop improves. The team led by Beata Manthey said the technology sector continues to stand out in earnings growth, earnings momentum and valuation. “Therefore, we believe the broadening of the rally reflects wider market participation, rather than a rotation of capital out of technology and AI stocks,” the bank said. Citi expects continental Europe and Japan to be potential beneficiaries.
Citi strategists said there are early signs that the stock-market rally is beginning to broaden beyond a handful of artificial-intelligence stocks as the cyclical backdrop improves.
The team led by Beata Manthey said the technology sector continues to stand out in earnings growth, earnings momentum and valuation.
“Therefore, we believe the broadening of the rally reflects wider market participation, rather than a rotation of capital out of technology and AI stocks,” the bank said.
Citi expects continental Europe and Japan to be potential beneficiaries.
The team led by Beata Manthey said the technology sector continues to stand out in earnings growth, earnings momentum and valuation.
“Therefore, we believe the broadening of the rally reflects wider market participation, rather than a rotation of capital out of technology and AI stocks,” the bank said.
Citi expects continental Europe and Japan to be potential beneficiaries.