Citigroup Strategists Predict Further Decline in US Stock Market

According to BlockBeats, on September 10, Citigroup strategists indicated that last week's sell-off in the U.S. stock market could lead to further declines in major indices. In a report to clients on Monday, strategists Chris Montagu and others noted that significant unwinding of long positions in the S&P 500 Index, coupled with an increase in short positions in the Nasdaq 100 Index, suggests a shift in risk appetite towards a more bearish outlook. They highlighted that hedge funds' de-risking operations in the S&P 500 have reduced total exposure to only half of its mid-July peak. Montagu wrote that forced liquidation of long positions could exacerbate or accelerate the sell-off in the short term. If this trend continues, the newly added short positions on Friday are likely to turn the tech-heavy index into a net short position.