Goldman Sachs CEO Lloyd Blankfein said on CNBC that "economic underpinnings" are looking good and that "we could be on the threshold of a bull market."
Prices for U.S. Treasurys fell on Tuesday as investors looked ahead to retail sales data to shed light on consumer habits on Wednesday after a lackluster debt sale, the first for a total of $72 billion in supply this week.
Oil prices rose after OPEC raised the outlook for the amount of crude it will need to pump this year to keep supply and demand in balance.
Gold futures settled nearly unchanged at $1,649 per ounce, as the dollar fell following a statement from the Group of Seven industrialized countries reaffirming commitment to market-determined exchange rates.
World stock markets have rallied to levels not seen since the collapse of Lehman Brothers in January, but the bull market has screeched to a halt and now one of the world's largest investment banks has downgraded its outlook for global equities.
President Barack Obama's State of the Union speech Tuesday could drive market focus straight to the next skirmish in the budget and deficit battle with Congress, depending on his tone.
Tokyo stocks jumped back near a 33-month high on Tuesday while other Asian shares lacked momentum with many regional bourses shut for holidays and as investors await the U.S. president's State of the Union address for trading cues.
Japan's Nikkei share average gained 1.9 percent on Tuesday and the yen weakened to a 33-month low against the dollar after a U.S.Treasury official seemed to voice support for Japan's aggressive policies to combat deflation and bolster growth.
The PIMCO Total Return Fund, decreased its mortgage holdings to its lowest level since mid-2011, ahead of the prospect of higher interest rates and emerging inflationary pressures.
Billionaire investor Jim Rogers told CNBC's "The Kudlow Report" that the stock rally is just the result of ultra-easy monetary policy by the world's central banks.
The euro rose against the dollar and yen on Monday after incurring heavy losses for three straight days as an ECB policymaker dismissed talk of intervening to weaken the currency.
U.S. Treasurys dipped slightly but remained within recent ranges on Monday before new Treasury supply this week and a day ahead of President Barack Obama's State of the Union address, which will be watched for any signs of a deal on spending cuts.
Brent crude futures fell on concerns about the euro zone economy, while U.S. crude rose and narrowed the spread between the two contracts, reducing Brent's premium to its U.S. counterpart.
Gold fell to a one-month low on Monday, as investment appetite for the metal was hurt by a sluggish price performance in the year to date.
The yen jumped Friday after Japan's finance minister said the currency's recent drop had gone too far, too fast, and doubts crept in about aggressive Bank of Japan action.
U.S. Treasurys ended near flat on Friday after dipping during the session when stocks resumed their climb and traders positioned for $72 billion in new government debt supply next week.
The premium of international benchmark crude Brent to U.S. oil futures jumped to over $23 a barrel as concerns mounted about stockpiles of crude at the Cushing, Oklahoma, delivery point for the U.S. contract.
Underlying sentiment in bullion and the euro was weak after the European Central Bank highlighted downside risks to the region's economy.
Asian shares edged up on Friday after China's trade data for January beat forecasts to underscore a recovery trend, but prices were capped by investors seeking to book profits before next week's Chinese New Year holidays.
The euro plunged against the dollar and yen on Thursday after ECB President Mario Draghi said the euro exchange rate was important to growth and price stability.
Get the best of CNBC in your inbox