On March 27, Citi announced it is reducing its exposure to US stocks and warned that the conflict in Iran is unlikely to end quickly, with rising downside risks. The bank has downgraded its overweight position in small-cap stocks to neutral and adjusted its overall stock allocation to neutral, citing oil shocks, weak macro signals, and tightening liquidity. The market is already under pressure, with major indices approaching correction territory; Citi cautioned that current levels of panic are limited, and if tensions escalate, there is still room for further market declines.