Citi downgraded U.S. stocks to neutral from overweight and upgraded Chinese stocks to overweight, saying U.S. exceptionalism has at least paused. A report by Citi strategists such as Dirk Willer shows that the disruption to U.S. exceptionalism is now more pronounced; the company has been overweight U.S. stocks since October 2023. Citi expects U.S. growth momentum to be lower than the rest of the world, though U.S. stocks could return to outperforming when the artificial intelligence narrative reigns supreme again. Given the strength of the Chinese tech sector, government support for the sector and cheap valuations, the Chinese stock market still looks attractive even after the stock market rally, Citi said; "DeepSeek proves that Chinese technology is at the forefront of Western technology and even surpasses Western technology," Citi said. (Jin Ten)