Stocks rose Monday as market participants grew more confident that inflation may have peaked ahead of highly anticipated inflation data this week. The Dow Jones Industrial Average rose over 200 points, while the S&P 500 and Nasdaq Composite both added about 1%.

Here's how the market settled on Monday:

S&P 500 Index (SPY  ): +1.06% or +43.05 points to 4,110.41

Dow Jones Industrial Average (DIA  ): +0.71% or +229.63 points to 32,381.34

Nasdaq Composite Index (QQQ  ): +1.27% or +154.10 points to 12,266.41

Monday's moves extended a rebound for Wall Street, with all three major averages snapping a three-week losing streak on Friday.

Stocks have been volatile ahead of the Federal Reserve's September 20-12 meeting. Currently, investors are looking for more clues on the central bank's next policy decision from Tuesday's Consumer Price Index (CPI) report for August, which is due before market open.

Economists surveyed by Bloomberg expect the month's CPI to rise by 8.1% year-over-year, moderating from July's annual increase of 8.5%. From July to August, economists expect CPI to ease by 0.1% in response to falling energy prices. Core CPI, which excludes more volatile energy and food prices and is one of the Fed's preferred inflation gauges, is forecasted to rise by 6.1% annually in August, a jump from July's reading of 5.9%.

Tuesday's CPI reading is the last major economic report before the Fed's September policy-setting meeting. Multiple Wall Street institutions, including Goldman Sachs (GS  ) and Bank of America (BAC  ), have raised their forecasts for another 75 basis point interest rate hike this month, which would mark the Fed's third consecutive one in effort to restore price stability.

Recently, multiple Fed officials have signalled that they plan to remain aggressive towards inflation, with Fed Chair Jerome Powell signaling last week that interest rates will remain high to fight inflation.

"Restoring price stability will take some time and requires using our tools forcefully to bring demand and supply into better balance," Powell said in remarks last month. "I can assure you that my colleagues and I are firmly committed to this project, and we will keep at it until the job is done."

Sentiment was also boosted on Monday by recent developments including military success by Ukraine against Russian forces and a weaker U.S. Dollar (UUP  ).

In the news on Monday, Twitter (TWTR  ) responded to a recent letter from Elon Musk, indicating that the social media company plans to enforce the agreement and close the transaction on the price and terms agreed between the two parties, according to a U.S. Securities and Exchange Commission (SEC) filing.

Elsewhere, Google (GOOGL  ) announced a new spinout called Aalyria, which will manage "hyper fast, ultra-secure, and highly complex communications networks that span land, sea, air, near space, and deep space."

Looking ahead, investors will respond to Tuesday's CPI report. Starbucks (SBUX  ) is also expected to be in the spotlight as the coffee chain plan to unveil its "reinvention" strategy at its investor day on Tuesday.