Market rally to continue despite volatile sessions

THE tentative rally last week, despite a relatively hawkish tone from the Federal Reserve and Russian President Vladimir Putin, may continue this week.

While these big-picture worries will cause volatility, traders say an improving outlook for US corporate profits will continue to lift the stock market for the foreseeable future.

Data last week, including regional factory reports and another strong reading on weekly unemployment claims corroborated the Fed's view that the economic recovery is on track. While inflation is muted, analysts expect the Fed to wind down its bond buying before the end of this year and to start raising interest rates some time next year.