Nasdaq 100 and S&P500: Tech Shares Lead Rebound on Tariff Aid Right this moment…

Final week delivered some of the unstable stretches for equities this yr. The CBOE Volatility Index spiked above 50 on Thursday, erasing a lot of the prior day’s rally—when Trump introduced a 90-day delay on some new tariffs, triggering the third-largest one-day acquire in U.S. shares since WWII.

Regardless of that rebound, the key indexes stay in destructive territory because the unique tariff announcement. The S&P 500 is down 5.four%, the Nasdaq Composite has fallen 5%, and the Dow is off four.eight%. Apple alone shed practically $640 billion in market cap throughout simply three periods.

Citi Downgrades U.S. Equities on Valuation Dangers

Citigroup downgraded U.S. equities to impartial, warning that valuations stay elevated and earnings downgrades are nonetheless to return. The agency pointed to tariff dangers, geopolitical issues, and investor reallocations as causes to diversify away from U.S. markets. Citi highlighted Japan and Europe as extra enticing as a consequence of decrease valuations and extra conservative earnings expectations.

Regardless of short-term potential for tech rebounds, Citi famous cracks in U.S. fairness energy are forming, strengthened by a weaker greenback and rising Treasury yields. The Magnificent Seven might even see short-term reduction, however broader U.S. fairness outlooks stay underneath stress.