Trump’s dramatic reversal means U.S. equities are now a buy, Citigroup said in an upgrade. Adam Pickett, head of global macroeconomic strategy at the bank, upgraded U.S. stocks to overweight, saying they were oversold before President Donald Trump announced a 90-day reprieve on most of his “reciprocal” tariffs, apart from those on China. “Given the risk catalyst we add equity risk where we were most oversold as of this morning prior to the announcement,” Pickett wrote in a Wednesday evening note entitled “Trump Put Activated.” “We upgrade both the U.S. and EU to overweight.” In particular, Pickett said the Nasdaq should be regarded as a tactical buy for investors, given the oversold nature of the index. On Wednesday, the index soared more than 12%, its biggest one-day advance since January 2001, and its second best day ever. The rating change at Citigroup came after Trump walked back a trade policy that many economists and strategists on Wall Street worried would tip the U.S. economy into a recession. Goldman Sachs, for example, rescinded a recession forecast it had only issued a couple of hours before the trade policy was adjusted again Wednesday. In recent weeks, several Wall Street investment banks slashed their year-end forecasts on an increasingly grim economic outlook. The CNBC market strategist survey shows Citigroup equity strategist Scott Chronert, at least formally, has maintained its S & P 500 target at 6,500 — which would equal almost a 23% rally from where the benchmark index stands early Thursday. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange!| Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
