Futures on the S&P500 (-0.8%) and Nasdaq-100 (-1.1%) point to a cautious start to 2024 on Wall Street, at the end of a long series of bullish weeks for the major US equity indices.

Hopes of rate cuts by the Federal Reserve this year led to solid annual results at the end of 2023, with gains of around 14% for the Dow Jones, 24% for the S&P500 and 43% for the Nasdaq Composite.

Questioning the outlook for US equities in 2024, BNY Mellon IM warned last week that "while a good year of returns is possible, the level of uncertainty remains high".

In his view, while the risks to US equities have receded thanks to slowing inflation, it is 'difficult to justify high valuations and strong earnings prospects in the current macroeconomic environment'.

This first week of 2024 will see the release of statistics such as PMI indices (including the manufacturing sector on Tuesday) and the December employment report, as well as a number of quarterly corporate releases such as Walgreens.

Meanwhile, Bristol Myers Squibb has announced that the European Medicines Agency has approved its marketing authorization application for repotrectinib in non-small cell lung cancer and solid tumors.

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