(Bloomberg) -- Investors appear to be showing “persistent” demand for US stocks, according to Citigroup Inc. strategists, suggesting there’s room for the rally to resume after the recent pullback.

More than $16 billion in net long positions was added to S&P 500 futures last week, while exchange-traded funds showed net inflows, strategists led by Chris Montagu wrote in a note dated April 2.

Overall positioning isn’t stretched compared to history, “leaving room for flows to support a further rally in US equities,” Montagu said. However, the strategist warned that a disappointing jobs report later this week could “pause the newfound flows momentum.”

The S&P 500 has stumbled in the early days of April following its biggest first-quarter gain in five years, as investors grow worried about the pace of Federal Reserve rate cuts. All eyes are on the Labor Department’s monthly jobs report on Friday, with economists expecting payrolls to increase by at least 200,000 for a fourth straight month.

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