BofA's strategists said Monday that they expect the S&P 500, the benchmark index for US fund managers, to reach the 5,000-point mark by the end of 2024.

The US investment bank - which today unveiled its economic outlook for next year - says it expects US equity markets to set all-time highs thanks to the ebbing of inflation, which should enable major central banks to cut rates.

Candace Browning, Head of Global Research at BofA, points out that "2023 has contradicted almost everyone's expectations".

"Recessions haven't materialized, rate cuts haven't materialized, bond markets haven't rebounded, except for a few brief painful episodes, and the rally in equity markets has surprised many investors who preferred to underweight them", adds the analyst.

As for 2024, Candace Browning and her teams expect central banks to successfully orchestrate the 'soft landing' scenario so dear to the markets' hearts.

For Savita Subramanian, head of equity strategy for the US, Wall Street is unlikely to rally on the prospect of Fed rate cuts, but rather on the ability of companies to adapt to the central bank's latest restrictive measures.

As a result of the restocking movement affecting commodity markets, BofA says it expects Brent crude to rise to an average level of $90 next year, while WTI is expected to average around $86 over the coming year.

As for bond yields, the New York-based firm expects US rates to remain at 'high' levels due to the recent deterioration in the US fiscal situation.

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