Citi expects a gradual wind down of the Middle East conflict and sees lower oil prices supporting broader participation across U.S. equities.

How this affects you

U.S. equity markets are broadening beyond technology, with consumer discretionary, financials, and small-cap stocks poised to benefit from lower energy prices and stronger earnings. A surge in IPO activity, driven by AI-related growth, is reversing the trend of shrinking public equity supply, potentially increasing market liquidity if fundamental support persists.