US stocks rally ahead of Fed meeting

US stocks traded higher as Wall Street awaited the Federal Reserve's policy meeting.

The Dow Jones Industrial Average rose 106.86 points, or 0.59 per cent, to 18,230.66 on Monday, Xinhua news agency reported.

The S&P 500 added 11.23 points, or 0.52 per cent, to 2,150.39. The Nasdaq Composite Index gained 21.42 points, or 0.41 per cent, to 5,265.99.

Investors kept a close eye on the Fed's two-day policy meeting, scheduled to begin on Tuesday, for more clues on the timing of a next rate hike.

Financial markets have been choppy last week on contrasting remarks on rate hikes by Fed officials.

"The Fed is expected to leave rates unchanged this week, but investors are now looking for a hike in December. Fed officials have called a hike before the end of the year 'likely,' but they said the same thing about a hike before the end of the summer in June and July," said Chris Low, chief economist at FTN Financial, in a note.

On Friday, US stocks ended lower after wavering in a tight range as investors pondered over the key inflation data.

--IANS

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