That’s a bold call with markets only pricing in ~46 bps of rate cuts by year-end with no rate cuts expected through the summer at least at this stage. Their latest view above is predicated on the outlook following the US jobs report on Friday. Subsequently, Citigroup expects the Fed to cut further in January and March 2026 – 25 bps each as well.

At the same time, the firm has also raised their S&P 500 year-end price target to 6,300 (from 5,800 previously).

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