From Financial Modeling Prep: 2025-04-30 07:08:00

During the IMF-World Bank meetings, negative sentiment towards U.S. assets hit “extreme” levels, with investors citing “uncertainty” as their top concern. Citi strategists believe fears of a recession due to President Trump’s tariff agenda are driving this sentiment.

Citi’s client note highlights widespread skepticism about U.S. growth estimates and a prevailing tilt towards a steeper yield curve in the Treasury market. There are also elevated bets on a weaker U.S. dollar amidst shifting policy risks.

Analyst downgrades on U.S. financials and industrials have outnumbered upgrades, reflecting broad skepticism among investors. FMP’s Up-Down Grades by Company API can help track real-time analyst rating changes to monitor sentiment shifts.

Despite the negative outlook, Citi sees potential relief through bilateral trade agreements with the U.K., India, Japan, and South Korea. A breakthrough with China in ongoing negotiations remains crucial in easing tariff fears and restoring market confidence.



Read more at Financial Modeling Prep:: Extreme Pessimism on U.S. Assets as Tariff Uncerta…