According to recent data from Citigroup, investor positioning for the S&P 500 and Nasdaq has seen a notable decline due to increasing policy risks and signs of a slowing US economy. The S&P 500 alone witnessed nearly an $18 billion drop in positioning, marking one of the largest weekly declines in three years.

Despite this pullback, the Nasdaq’s bullish sentiment remains moderate, though a shift towards caution is evident among investors.

Citigroup’s findings suggest a cautious approach for investors in light of evolving macroeconomic indicators and the political landscape ahead. As such, close monitoring of market sentiment and economic releases will be key in navigating this turbulent period.

Ultimately, understanding these trends will help investors make informed decisions in an uncertain market environment.