US stocks rose to a record high on Tuesday amid a large jump in retail sales. Strong results from industry giants such as Walmart and Home Depot showed that demand continued despite weakened purchasing power because of inflation.

The data offset the comments of St. Louis Fed President James Bullard that the central bank should accelerate the tapering of monetary stimulus. All major stock indices rose, with the S&P 500 continuing its November rally.

"With the robust retail sales read and solid start to retail earnings, it's crystal clear that inflation isn't standing in the way of consumers," said Mike Loewengart, managing director of investment strategy at E*Trade Financial. "Despite some hiccups on the labor market and inflation fronts, this could serve as the vote of confidence investors needed, signaling that the economy is still chugging along nicely."

On a different note, the term of Fed Chairman Jerome Powell ends in February next year. US President Joe Biden Biden interviewed him and Lael Brainard this month to choose whoever fits the role of Fed chief in the next four years.

Going back, strategists at Goldman Sachs raised their outlook for US stocks yesterday and said the rally observed recently will continue into 2022.

Strategists at JPMorgan Chase were also optimistic amid bets that central banks will remain dovish.

Other key events for this week are:

- EU CPI data (Wednesday);

- US housing starts report (Wednesday);

- Leading US index and jobless claims data (Thursday);

- speeches of Richard Clarida and Mary Daly (Friday).