Strategists at Citi downgraded U.S. equities after a strong first half of 2023, saying an economic slowdown will weigh on company earnings.
The Wall Street firm slashed the rating to neutral from overweight Monday and said the S & P 500 will pull back 9% to end the year at 4,000.
"After a solid 1H, US outperformance may go on pause," Citi strategists said in a note.
The market ended the first half of the year with a bang as the S & P 500 popped 15.9% for its best first half since 2019.
The S & P 500 shed 1.2% last week.
Organizations:
Citi, US Strategy, Nasdaq, Federal Reserve, Wall Street, CNBC