Citigroup Raises S&P 500 Year-End Target Amid Increased Demand for Shorting Products

According to PANews, Citigroup has increased its year-end target for the S&P 500 index from 6,300 points to 6,600 points. Stuart Kaiser, Citigroup's Head of U.S. Options Strategy, noted that their derivatives trading department has recently observed a significant rise in demand from asset management clients for products that short the iShares index or junk bond indicators. This trend may reflect macro investors' expectations regarding future market directions or indicate that they are hedging against potential pullbacks in risk assets. Kaiser highlighted that the activity of hedging credit risk suggests a reasonable market correction might occur in the next three months.