US equities turn higher ahead of Fed meeting

After the three major indexes logged their worst week in three months, US stocks rose on Monday. The S&P 500 climbed 0.3% after starting the session in the red territory, while the Dow Jones Industrial Average added 100 points. The tech-heavy Nasdaq advanced 0.2%.

In the bond market, the benchmark US 10-year Treasury note spiked to 3.49%, its highest level since 2011, while the 2-year Treasury note inched past a 15-year high of 3.9%.

Investors are gearing up for the Fed’s two-day policy meeting on Sept. 20-21. The US central bank is expected to deliver a third-straight 75-basis-point increase at the conclusion of discussions on Wednesday at 2:00 p.m.

Higher-than-expected inflation data last week sparked a sell-off across US equity markets after renewing fears the Fed will ramp up the magnitude of its monetary tightening efforts and tip the economy into a recession. The benchmark S&P 500 shed 4.7% for the week, the Dow Jones Industrial Average fell 4.1%, and the tech-heavy Nasdaq Composite tumbled 5.5%.

A pre-earnings warning from shipping giant FedEx (FDX) also exacerbated growth concerns on Friday after the company said a global recession could be underway, withdrawing its full-year guidance on macroeconomic trends that have “significantly worsened.”