Citigroup sends major warning after $3 trillion stock wipeout Faizan Farooque Mon, November 9, 2026 at 1:55 PM EST 1 min read ^IXIC +2.86% C +2.63% Trade C on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Citigroup Inc. (C, Financials) lowered U.S. stocks to Neutral from Overweight , citing increasing worries over artificial intelligence spending, regulatory risks and investor positioning.Beata Manthey and other strategists said they want to see more steady mood in AI stocks after a big selloff in the market.Positioning in important indices such as the Nasdaq could continue to erode as investors cut exposure to technology stocks, the bank cautioned.The recent sell-off has eliminated around $3 trillion in market value from firms in the S&P 500.The fall came after last week's U.S. midterm elections, where the Democrats gained seats and raised fears about possible curbs on data-center building.Investors are also wondering if the heavy investment in AI infrastructure will pay off.Citigroup downgraded the global and European technology sectors to Neutral from Overweight.The bank also upgraded European stocks ex-UK on less exposure to tech volatility and higher upside from declining oil prices.It also upgraded global healthcare and European food and beverage shares to Overweight.The developments show Citigroup is favoring more diversification while the investment in AI remains questionable.The next driver is whether tech equities will recover and whether investors can regain confidence in the pace and profitability of AI infrastructure expenditure.
