Hedge funds' risk cuts triggered recent market sell-off, but a deeper drop isn't expected, says Citigroup CEO.

Citigroup CEO Jane Fraser attributes the recent sharp market sell-off to hedge funds rapidly de-risking by selling long positions and covering shorts, which caused prices to fall faster than fundamentals. Despite the spike in volatility and a significant Nasdaq drop amid AI regulation fears, Fraser believes this correction is overdue and unlikely to worsen. She highlights that the demand for AI remains strong, with uncertainties only about the pace and bottlenecks. Investors, especially retirees, should consider the forced selling as a temporary distortion and maintain a long-term perspective, watching key signals like the VIX and hedge fund risk adjustments to gauge market stability.

Citigroup's stock price on Pluang is USD 121.45 as of Nov 09, 2026 21:31 WIB, showing a positive 1.99% change in one day. The stock's market capitalization stands at $197.05 billion, reflecting its significant presence in the financial sector. Investors typically hold Citigroup shares for about 132 days on Pluang, indicating a moderate investment horizon amid current market volatility.