Tech stocks like Tesla led US equities, with the Nasdaq gaining more than 6% in January so far. Traders also are on watch for earnings from Salesforce today.
Some profit taking could kick-in as market leaders, such as Microsoft and Tesla are scheduled to report results this week, along with dozens of other big names.
Economic data is also going to be closely observed, with a reading on gross domestic product (GDP) for the fourth quarter from the US economy and Core PCE due out Thursday.
The bets were also further bolstered by an article from Nick Timaraos that said officials are preparing to slow down from 50 basis points in December to 25 basis points at their next policy-setting meeting Jan. 31-Feb. 1.
Despite messaging from Federal Reserve officials that interest rates will move above 5%, markets have cheered another expected downshift to a smaller hike in February after some weaker economic data points.
Also, the FED watch tool, which serves as a barometer for imminent Fed rate and US monetary policy, shows markets are pricing in a 99.8% chance of a 25-basis point hike Feb. 2.
In Europe, European markets started the new trading week on an uncertain note Monday with investors reassessing the economic outlook. European stock traders are likely waiting for PMI data later this week.
Asian share were subdued, as most markets in the region are closed for the Lunar New Year holiday, with markets in Shanghai shut for the whole week.
Many Asians accumulate gold over the new year period and give to relatives as gifts. In addition, with the fallout in crypto this year gold and silver are very popular alternatives.