Key facts
- U.S. equity positioning broadened last week.
- Small-cap stocks experienced strong inflows.
- Citi identified stretched Nasdaq exposure as a persistent risk.
- Gains in the Nasdaq were fueled by short covering and new long positions.
U.S. equity positioning saw a broader expansion last week, with small-cap stocks attracting significant inflows. Despite this widening participation, analysts at Citi have flagged that concentrated exposure to the Nasdaq remains a key risk. The gains observed in the Nasdaq index were reportedly driven by a combination of short covering and the establishment of new long positions, suggesting a potentially fragile rally.