Citi raises S&P 500 outlook, says the Fed will do 'whatever it takes' to halt a big stock decline

The Marriner S. Eccles Federal Reserve building stands behind a fence in Washington, D.C., on Tuesday, Aug. 18, 2020.
Erin Scott | Bloomberg | Getty Images

Citigroup has given up on its position that stocks are headed for a big decline this year, as it sees the Federal Reserve providing a safety net against issues weighing against the market.

The bank's equity strategists said in a note that their earlier bearish predictions now appear "unlikely as unbridled Fed easing, negative real rates and technical indicators show resistance breakouts."

In turn, they have raised their forecast for 2020 and provided some guidance as well into 2021.