US stocks maintain bull run as Fed looks set for more rate hikes

US stocks hit record highs last week to confirm an intact bull market as well as a Dow Theory buy. The S&P ended the week up 0.8 percent.

This week, the Federal Reserve's monetary policy meeting will probably be the main focus of markets.

Joseph LaVorgna, chief economist of the Americas at Natixis, suggested that with the economy growing and inflation at or above target, “they're going to do more” rate hikes.

Albert Edwards, global strategist at Société Générale, thinks that the stock market may not be able to withstand further increases in interest rates though.

“The Citi Economic Surprise Index for the U.S. had slumped back towards zero. That convergence of expectations with the data normally means yields should have continued to paddle sideways around 2.8% — and yet we have seen this dramatic rise,” he said.