Citi Warns of Potential Slowdown in Post-Election Stock Rally for S&P 500 and Russell 2000 Amid Profit-Taking

Strategists at Citigroup have indicated that the recent post-election rally in U.S. stocks may lose momentum as investors begin to take profits. The firm highlighted that positioning in the S&P 500 and Russell 2000 is at its highest level in three years, suggesting that elevated profit levels could lead to short-term profit-taking. This trend could limit further upside potential in the market, raising concerns about 'unwind risks' for stocks. Analysts suggest that small-cap stocks may struggle to keep pace with the broader market rally.