US equities sell-off is easing, says Citi strategist

US equities sell-off is easing, says Citi strategist
However, it's too soon for the bulls to take center stage.
OCT 10, 2023
By  Bloomberg

Investors are backing off from bets on a continued sell-off in U.S. stock futures, according to Citigroup Inc. strategists.

Although positioning in both S&P 500 and Nasdaq 100 futures remains moderately bearish, “the pace of flows has slowed significantly,” the team led by Chris Montagu wrote in a note dated Monday.

Still, it was “unclear whether the fading momentum could mark the bottom of the selloff, but so far no new bullish trend is evident,” they said. Short positions were still moderately in profit, they added, creating little pressure on positioning regardless of market moves. Their data is as of Oct. 6, before Hamas’s surprise attack on Israel roiled global financial markets.

The S&P 500 has recovered in early October after slumping in the past two months on worries that the Federal Reserve could keep rates higher for longer. But U.S. 10-year yields slid the most since March on Tuesday after dovish comments from Fed officials fueled speculation interest-rate hikes are about done, while jitters over the Israel-Hamas war added haven demand.

Focus is now on minutes from the Fed’s last meeting, due on Wednesday, and on U.S. inflation data later in the week.

Latest News

'Bogged down' advisors just want to have fun (again)
'Bogged down' advisors just want to have fun (again)

Jim Cahn, of Wealth Enhancement Group, lifts the lid on his firm's partnership model, his views on RIA M&A, and the widely slept-on reason why advisors are merging into larger organizations.

Vestwell unveils new emergency savings account offering
Vestwell unveils new emergency savings account offering

The fintech firm is cementing its status in the workplace savings space with its latest ESA offering, which employers can integrate into their existing benefits package.

'Money Mimosas' and other ways to show your Valentine financial love
'Money Mimosas' and other ways to show your Valentine financial love

Wealth managers offer unique ideas for couples to grow closer emotionally and financially.

Limra research finds financial confidence on the rise among Black American workers
Limra research finds financial confidence on the rise among Black American workers

Survey findings suggest increased sense of financial security and more optimistic 2025 outlook, while highlighting employers' role in ensuring retirement readiness.

DOGE efforts sideswipe muni bonds backed by federal lease payments
DOGE efforts sideswipe muni bonds backed by federal lease payments

Falling prices for some securities within the $4 trillion state and local government debt market spotlight how the push to shrink spending is sending shockwaves across the US.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.