US stocks rallied to record highs on Wednesday, after the latest Fed minutes indicated that members are now considering cutting back bond purchases. Both S&P 500 and Nasdaq soared to all-time highs, with the benchmark S&P doing so for 8 consecutive days already. The index gained 0.3%, while the dollar remained practically the same against other world currencies.

Apparently, the market is still "in a state of euphoria", said Mercer Advisors CIO Don Calcagni. It is for this reason that 10-year bonds are at 1.31%.

Not only did the latest Fed minutes indicate a possible cutback on bond purchases, but also marked a change in the central bank's confidence in inflationary risks.

But Max Gokhman, head of asset allocation at Pacific Life Fund Advisors, said if Fed members are concerned about inflation, Treasury yields should grow, not decline.

Other key events this week are:

- G20 meeting (Friday);

- data on China PPI and CPI.