Citi explains why the AI trade may remain under pressure

Investing.com · Sam Boughedda · 2026-11-06 11:30 UTC

Citi explains why the AI trade may remain under pressure

Investing.com -- Citi told clients in a note on Friday that the AI trade could remain under pressure after the U.S. midterm elections, and it prefers European stocks over U.S. equities for now.

The bank noted that markets typically pull back ahead of midterms and rally afterward, with its seasonal analysis pointing to November-December S&P 500 returns of 3% to 4%. However, Citi said this year’s pre-election weakness had other causes.

“More importantly, the pullback ahead of the midterms was not mostly due to the election, but due to AI financing worries, and oil,” the bank wrote.

Read the full story at Investing.com · All coverage of this story