Stocks rebound from earlier losses in volatile trading ahead of the Fed decision, Dow gains 100 points

Stocks rebounded from their earlier losses on Monday in a volatile trading session ahead of the Federal Reserve’s two-day policy meeting slated to begin this week.

The Dow Jones Industrial Average traded 126 points, or 0.41% higher, while the S&P 500 and Nasdaq Composite gained 0.29% and 0.23%, respectively.

Investors are focused on the Fed’s latest policy meeting slated to begin Tuesday. The central bank is expected to raise interest rates by another three-quarters of a point, though investors are also watching for guidance about corporate earnings before the next reporting season begins in October .

All 11 major S&P 500 sectors rose or traded flat, led to the upside by consumer discretionary, industrials and materials. Health care was the laggard, falling 1.3%.

Stocks slid last week as investors reacted to a hotter-than-expected inflation report and a dismal warning from FedEx about a “significantly worsened” global economy. The major averages posted their fourth weekly loss in five weeks and hovered near two-month lows.

Beyond the Fed meeting, there are just a few economic data releases on deck this week, including August housing starts on Tuesday and initial jobless claims on Thursday.

—CNBC’s Patti Domm contributed reporting.