{"id":109996,"date":"2026-02-18T11:09:57","date_gmt":"2026-02-18T16:09:57","guid":{"rendered":"https:\/\/www.businessupturn.com\/usa\/?p=109996"},"modified":"2026-02-18T11:09:57","modified_gmt":"2026-02-18T16:09:57","slug":"barclays-sees-shifts-in-u-s-and-european-stocks-as-risk-appetite-wavers","status":"publish","type":"post","link":"https:\/\/www.businessupturn.com\/usa\/barclays-sees-shifts-in-u-s-and-european-stocks-as-risk-appetite-wavers\/109996\/","title":{"rendered":"Barclays sees shifts in U.S. and European stocks as risk appetite wavers"},"content":{"rendered":"
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Barclays analyst Venu Krishna said Wednesday that the recent market rotation is showing cracks in investor confidence. This has led the bank to change its views on different investment styles in both U.S. and European stocks.<\/p>\n

In Europe, Value and Yield stocks are taking the lead while Momentum is losing steam. Defensive stocks are coming back into favor as investors look for safer options.<\/p>\n

In the U.S., Barclays stays positive on Growth stocks because fundamentals are solid, Big Tech earnings are rising, and AI demand is holding strong. At the same time, the rotation has made markets more volatile.<\/p>\n

Krishna upgraded U.S. Value from Negative to Neutral. He said it benefits from AI-driven rotation and a friendlier inflation environment, but most of the gains this year come from higher stock prices rather than earnings growth.<\/p>\n

Barclays also became more positive on large-cap stocks compared to small-caps. Small-cap earnings have weakened, valuations have shifted, and Big Tech remains strong and resilient.<\/p>\n

Momentum got downgraded to Neutral because valuations are stretched, earnings growth is weak, and the AI excitement is fading. Quality remains Neutral in both regions since there aren\u2019t many new catalysts.<\/p>\n

U.S. High-volatility stocks are rated Negative due to weakening fundamentals and sensitivity to investor sentiment. Yield stocks in the U.S. also face headwinds because of lower rate expectations and exposure to small-caps.<\/p>\n

In Europe, the pattern is similar. Value is holding up, Momentum is fading, and crowded positions could trigger reversals. Overall, Barclays sees the market mood as fragile and expects more shifts in investor preferences.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Barclays analyst Venu Krishna said Wednesday that the recent market rotation is showing cracks in investor confidence. This has led\u2026<\/p>\n","protected":false},"author":294,"featured_media":109997,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73],"tags":[34997],"class_list":["post-109996","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-us-markets","tag-barclays"],"reading_time":"2 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/109996","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/users\/294"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/comments?post=109996"}],"version-history":[{"count":1,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/109996\/revisions"}],"predecessor-version":[{"id":109998,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/109996\/revisions\/109998"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media\/109997"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media?parent=109996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/categories?post=109996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/tags?post=109996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}