The Globe and Mail reports in its Tuesday edition that U.S. and Canadian stocks gained ground on Monday as market participants parsed mounting expectations of interest rate cuts from the Federal Reserve in the coming year and looked ahead to a week of crucial economic data. A Reuters dispatch to The Globe says that a broad but modest rally boosted the S&P 500 and Nasdaq to solid gains, while the Dow ended flat. The S&P/TSX Composite Index got its biggest boost from energy stocks, bringing the benchmark's gains since October to about 10 per cent. "Markets are heading in the direction of the Fed beginning to cut interest rates next year," said Tom Hainlin at U.S. Bank Wealth Management in Minneapolis. "The Goldilocks scenario continues to play out." Wall Street continues to build on seven straight weeks of gains, the S&P 500's longest weekly winning streak since 2017. The S&P 500 is now about 1.2 per cent shy of its all-time closing high, amid growing optimism regarding policy rate cuts in 2024. Toronto's energy sector rallied 1.5 per cent as the price of oil settled 1.5 per cent higher at $72.47 (U.S.) a barrel, with attacks by the Iran-aligned Yemeni Houthi militant group on ships in the Red Sea.