Citigroup and JPMorgan Chase make bold predictions on US stocks: Lagging stocks will come from behind and surge to become winners in the short term.

As trade tensions ease, the two major trading departments on Wall Street are making equally bold predictions for the US stock market: buying a large amount of stocks that have performed poorly this year can quickly generate short-term profits. The stock trading departments of Citigroup and JPMorgan Chase have stated that they are particularly bullish on small-cap stocks, tech hardware, and housing construction stocks in the coming weeks, as these sectors have all lagged behind the S&P 500 index in the recent uptrend. Stuart Kaiser, Citigroup's head of US stock trading strategy, stated that in the current environment, he also favors stocks of companies with weaker financial conditions. "Systematic traders and discretionary investors will show significant buying, as they have not been able to achieve desired returns in this rebound," Kaiser said. "Currently, their positions are underweight, and they have a lot of capital available to buy these lagging sectors." Andrew Tyler, head of global market intelligence at JPMorgan Chase's trading department, stated that it makes sense to purchase stocks in industries that have been hard hit through derivatives, as these industries may experience short-covering in the near term. This occurs when stock prices sharply rise, and traders hold short positions, forcing them to quickly buy back stocks to cut losses.