The “orderly” pullback in US stocks last week has reduced the risk of a chaotic selloff and set the stage for further gains in the S&P 500, Citigroup Inc. strategists say.
Bullish positions in S&P 500 futures fell to $70 billion from $77 billion last week, while short positions remained largely unchanged at $2.5 billion, according to a note from the bank dated Aug. 7.
“This orderly position trimming has reduced some of the short-term positioning risk that has been a worry for investors in recent weeks,” strategist Chris Montagu said. “This puts markets in a good set-up to make new gains or weather negative news/shocks in the coming weeks.”
US stocks suffered their biggest decline since March last week as bond yields rose following a downgrade of US government debt by Fitch Ratings. They bounced back slightly on Monday, although investors remain cautious ahead of key inflation data, which is due Thursday and is likely to provide clues on the Federal Reserve’s policy outlook.
Some of Wall Street’s most bearish voices — such as JPMorgan Chase & Co.’s Marko Kolanovic and Morgan Stanley’s Michael Wilson — have continued to warn that stocks could come under pressure from a slowdown in economic growth, even as economists have broadly pared back projections of a US recession.
Survey by Trust & Will reveals the touchiest subjects for families, and how conflict dynamics differ according to age and region.
Investors should "stay light on your feet," the head of US fixed income at RBC says.
Federal complaint filed in Texas court by a consortium of 11 states argues the fund giants used their market power to pressure energy companies and ultimately hurt consumers.
B. Riley Financial's share price has dropped more than 68 percent over the past 12 months.
The defectors, separately located in the Chicagoland and Texas, reportedly managed more than $260 million combined.
Streamline your outreach with Aidentified's AI-driven solutions
This season’s market volatility: Positioning for rate relief, income growth and the AI rebound
