Citigroup Downgrades U.S. Equities Amid Tariff Uncertainty

Citigroup has downgraded its outlook on U.S. equities, reducing its S&P 500 target due to tariff uncertainties affecting corporate earnings. The firm's year-end target is now set at 5800. Citigroup also shifted its global equity strategy, highlighting technology and financial sectors as growth areas.

Citigroup has adjusted its outlook on U.S. equities, bringing down the S&P 500 index target amid tariff-related uncertainties impacting corporate earnings.

Joining major brokerages like Goldman Sachs and BofA, Citigroup lowered its year-end target to 5800 from an earlier 6500 estimate and cut earnings-per-share estimates. Analysts cite tariff assumptions and macroeconomic signs as reasons for the revision.

While noting the potential negative impact of tariffs on U.S. earnings, Citigroup also updated its global equity strategy. It upgraded Japan's equities to overweight and preferred technology as a growth sector.

(With inputs from agencies.)