Citi Strategists Downgrade US Tech Stocks as Rally to Broaden
- Also cut financials but raise consumer discretionary stocks
- Strategists see defensive stocks benefiting from lower rates
Pedestrians walk along Wall Street near the New York Stock Exchange (NYSE) in New York.
Photographer: Michael Nagle/BloombergThe US stock rally is set to broaden out beyond technology, according to Citigroup Inc. strategists whose outlook on the sector has turned more cautious.
A team led by Scott Chronert reduced their stance on the tech sector to market-weight from overweight on the back of a new underweight recommendation on hardware companies. They also raised consumer discretionary to overweight.