Citigroup strategist Chronert: The Nasdaq 100 index is more suitable for "hiding" than the Russell index.

Citigroup strategists said that growth companies in the Nasdaq 100 index are better able to withstand market fluctuations than small and mid-cap stocks in the Russell 2000 index. "We prefer to seek shelter in the Nasdaq 100 index because we believe that fluctuations in trade negotiations and macroeconomic data may continue," wrote Scott Chronert, head of US stock strategy, in a report. Over the past two years, the Nasdaq index has outperformed the Russell index in terms of market upside, and this trend has remained unchanged even after President Trump announced tariff increases on "Liberation Day," strategists pointed out. The Russell index would need better-than-expected economic data, lower interest rates, and a stronger dollar to outperform.