Citi strategist: U.S. stocks will soon be headed for a slump

Citi strategists said that the decrease in capital inflows and the downward revision of growth expectations suggest that the U.S. stock market will soon be headed for a plunge. The company recently raised its year-end target for the S & P 500 to 5,600, but said in a client note on Friday, represented by Scott Chronert, that "short-term movements have prepared us for a pullback". They said that capital flows have slowed, internal sentiment indicators are at "euphoric" levels, and Citi forecasts a recession in the second half of the year. At the same time, recent consensus growth expectations have declined. All of this has prepared the stock market for "summer storms" or "sudden strong winds", Citi strategists said. In addition, the volatility of the election remains an uncertain factor, and both parties are likely to face fundamental pressure.