U.S. stocks rallied Monday ahead of a busy week for investors, with key inflation data and the Fed's last policy meeting of the year on tap over the next two days.
The S&P 500 (^GSPC) gained 1.4%, while the Dow Jones Industrial Average (^DJI) increased by 1.5%, or more than 500 points. The technology-heavy Nasdaq Composite (^IXIC) advanced by 1.2%.
The rally served as a rebound from stocks' worst week since September. The S&P 500 dropped 3.4% last week, while the Dow fell 2.8% and the Nasdaq dropped 4%.
Investors were also keeping an eye on moves in oil markets Monday, as WTI crude oil jumped 3.3% to trade at $73.39 after settling at a new 2022 low on Friday. The rally was boosted by energy stocks. The S&P 500 Energy Index advanced 2.5%.
Yields on government bonds also rose, with the yield on the benchmark 10-year U.S. Treasury note at around 3.617% early Monday, off a couple basis points from Friday's settlement.
Wall Street now turns its attention to consumer-price data out Tuesday, which is expected to help inform the expected trajectory of interest rates over the coming months. Economists surveyed by Bloomberg estimate headline CPI to increase by 0.3% for the second consecutive month, with year-over-year CPI falling from 7.7% to 7.3%.
The Federal Reserve will make its next interest-rate decision Wednesday at the conclusion of a two-day policy meeting, with investors expecting a 0.5% increase in the Fed's benchmark rate.
While this week's inflation reading and the Federal Reserve's decision are top of mind for investors, some of Wall Street's most prominent strategists have a different concern: future profit downgrades.
“The final chapter to this bear market is all about the path of earnings estimates, which are far too high,” Morgan Stanley’s Michael Wilson wrote in a note on Monday. As a result, Wilson called the consumer price index print and the Fed meeting "yesterday's news."
In corporate news, Twitter Blue is due to relaunch Monday with a nearly 30% surcharge for iPhone owners. The service still costs $8 per month, but will be $11 for those who purchase the services through the App Store.
On Monday, investors met with a risk appetite of billions of dollars worth of deals before the holidays. Amgen (AMGN) agreed to acquire Horizon Therapeutics in an all-cash deal valued at $27.8 billion, marking it the largest healthcare merge of the year, according to the Wall Street Journal. Shares of Horizon Therapeutics Public Limited Company (HZNP) surged 15% on the news.
Coupa Software Incorporated (COUP) entered an agreement to sell itself to private-equity firm Thoma Bravo LP for an all-cash transaction valued around $6.2 billion. Shares jumped 26% on Monday.
Also, grill-maker Weber (WEBR) locked another deal with BDT Capital Partners to be taken private, which is expected to doll out $3.7 billion for the purchase. Finally, Microsoft (MSFT) is set to buy a 4% stake in the London Stock Exchange Group.
Elsewhere, in the crypto world, former FTX CEO Sam Bankman-Fried said Monday that he's "currently not scheduled" to attend the Senate Banking Committee’s hearing on Dec. 14, though he will testify at a separate hearing by a House panel a day earlier.
Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv