Strategists led by Beata Manthey stated that since 2026, global stock markets have risen by approximately 12% in total, and they are currently still near historical highs. The MSCI global country indices ( MSCI All - Country World Index ) are expected to record double-digit gains for the fourth consecutive year. However, Citibank indicates that it still classifies the current market as part of the “resilient” camp, rather than believing that this round of gains has evolved into a complete state of “complacency.”

Profit remains the main support.

Citi's bullish core logic first comes from corporate profits.

However, Citibank still expects that AI investment will continue to be a profitable structural driver until 2027, and if cyclical sectors participate more strongly, the upward trend in the next phase may no longer rely solely on a few companies.

Higher yields still threaten the upward trend

The biggest challenge still comes from the bond market.

The yield on 10-year U.S. Treasury bonds has recently risen above 5.3%, reaching the highest level in over two decades. Rising yields will increase the borrowing costs for corporations and also make bonds more competitive compared to stocks, especially putting pressure on growth stocks with higher valuations.

This kind of pressure has tested the U.S. stock market on multiple occasions, but strong earnings performance has so far prevented a more significant pullback.

Citi's global economy team still expects that the global economic growth rate will be around 2.8% in 2027, among which AI investments will help offset the pressures brought about by rising energy prices and tighter monetary policies.

Ethan Mercer

Ethan Mercer is a financial journalist who covers cryptocurrency, stocks, and the global economy. He studied economics and finance before turning to market reporting, with a particular focus on Bitcoin, stocks, monetary policy, and investor sentiment. His reporting focuses on explaining daily market fluctuations and the broader trends behind them.