Financial giant Citigroup anticipates potential stock market downturns, asserting that earnings predictions present room for notable growth acceleration.
In a recent CNBC interview, Citi's equity strategist, Scott Chronert, expressed a bullish outlook on the US stock market and earnings growth for 2026. Chronert believes that investors are starting to shift their focus from short-term policy and tariff headlines towards the potential for a decent acceleration in earnings growth in 2026.
According to Chronert, Citi views potential pullbacks in the second half of 2025 as golden buying opportunities rather than signs of structural weakness. The firm is confident in the fundamental strength of the market, particularly the S&P 500, and expects elevated earnings growth over the next five years.
This long-term bullish stance is based on the firm's anticipation of volatility dynamics coming into play in the second half of the year, potentially triggering pullbacks. However, Citi sees these as tactical buying points rather than indicators of market weakness.
Moreover, the expectations for the next five-year earnings growth are high, with Citi anticipating a significant earnings growth acceleration in 2026. This optimism creates pressure on companies to beat and raise estimates, driving the market forward.
Meanwhile, in the world of cryptocurrencies, Tom Lee predicts that Bitcoin adoption is still in its early days and expects US banks to soon hold Bitcoin as collateral. Elsewhere, The Sandbox has launched the largest LAND sale to date on GBM Auctions, and Vision (VSN) has been launched as the new standard for user-centric token ecosystems.
In other news, Swarm Network has selected Walrus to power verifiable AI on Rollup.News, while Allnodes has launched Bare Metal Servers powered by AMD Threadripper 9000 Series. MultiBank Group has announced the sale of seven million MBG tokens in under one hour during an initial pre-sale, and Snail, Inc. has announced its intent to explore a proprietary USD-backed stablecoin.
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[1] CNBC Interview with Scott Chronert, Citi Equity Strategist [2] Consensus Forecasts showing robust earnings rebound next year [3] Goldman Sachs Raises Targets for the S&P 500 and Predicts Early Fed Rate Cuts [4] Citi's Confidence in Sustained Earnings-Driven Market Strength Beyond Near-Term Headline Risks
- As the focus shifts towards potential earnings growth in 2026, Scott Chronert, Citi's equity strategist, foresees pullbacks in the second half of 2025 as tactical buying opportunities rather than signs of structural weakness in the stock market, expressing a long-term bullish stance.
- In the world of cryptocurrencies, while US banks might soon hold Bitcoin as collateral, investments in altcoins are not part of Citi's immediate focus, as the firm is primarily concentrating on the fundamentally strong US stock market and the S&P 500.
- Although Citi anticipates a significant earnings growth acceleration in 2026, the increasing optimism creates pressure on companies to beat and raise estimates, this dynamic might not directly apply to the cryptocurrency market, whose growth is dependent on various factors other than just market expectations.
