Citigroup downgrades US stock rating due to persistent war risks

Citigroup is reducing its investment in US stocks and warns that the Iran conflict is unlikely to end soon, which exacerbates downside risks. The bank has cut its small-cap overweight to zero and adjusted its overall stock allocation to neutral, citing oil shocks, weak macroeconomic signals, and tightening liquidity. The market is already under pressure, with major stock indices approaching correction territory, and Citibank warns that while panic is currently limited, there is still room for further declines if tensions escalate.