Citi Says U.S. Equity Futures Are Still Facing More Position Unwinding

Citi said U.S. equity futures are undergoing a position reset, but there may still be room for further unwinding. According to 36Kr, strategist David Chew and others wrote that a recent sell-off in AI and tech stocks has driven broad risk reduction, sharply worsening positioning in U.S. equities and leaving large-cap fund flows broadly bearish. They noted that the S&P 500's repositioning has mainly come from long liquidation, while the Nasdaq's has combined more aggressive long liquidation with new short positions, pushing its positioning to a one-month low.