Momentum Keeps Stocks Rolling as Inflation Concerns Ease

U.S. equities kicked off the week on a strong note, driven by record-high momentum and AI-related enthusiasm.

The technology-led rally continued to gain traction as benign CPI and PPI readings reinforced expectations that the U.S. Federal Reserve (Fed) would keep interest rates steady.

Cooling inflation data further reduced expectations for additional policy tightening, although weaker-than-expected retail sales tempered enthusiasm by raising questions about consumer resilience.

Canadian equities outperformed their U.S. counterparts early in the week, supported by elevated oil prices and commodity strength.

However, gains moderated alongside concerns about softer U.S. consumer demand later in the week.