"Citi's Flagship Indicator Signals 'Euphoria' Levels, Downgrades Tech Stocks"

Citigroup's equity strategists anticipate a shift in the US equity rally towards more defensive market segments influenced by interest rates, leading to a downgrade of the technology sector to market-weight due to mixed prospects within its subsectors. The consumer discretionary sector is elevated to Overweight, while financials are adjusted to Market Weight with a balanced view. Citigroup's analysis also raises concerns about the sustainability of the current market rally, as its flagship indicator signals "euphoria" levels.