US technology giants have seen a strong rise in bullish investments as positive economic outlooks outweigh trade worries, according to strategists at Citigroup Inc.
Last week, long positions in the tech-heavy Nasdaq 100 grew more than those in the S&P 500, driven mainly by new bullish bets, while short positions steadily decreased across both indexes, the team led by Chris Montagu noted.
“Investor activity has been one-sided, focused on new risk-taking in large-cap stocks,” the strategists said. “Although tariff concerns persist, investors are also considering the changing macroeconomic environment.”
US stocks have bounced back since President Donald Trump paused some tariffs in April. Technology stocks have outperformed, supported by strong corporate earnings and a steady economic outlook.
Currently, the S&P 500 and Nasdaq 100 remain about 2% below their February record highs. Several Wall Street strategists, including those at Citi, have recently raised their year-end targets for the S&P 500, suggesting the worst impact from tariffs may be behind the market.
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