- Also cut financials but raise consumer discretionary stocks
- Strategists see defensive stocks benefiting from lower rates
The 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.
“The growth-cyclical barbell we have advocated for several months now allows for a broadening into defensive parts of the market, particularly those that are more interest rate sensitive,” Citi strategists wrote.
