Stocks rose higher on Monday to kick off a busy week of economic data and the Federal Reserve's anticipated policy decision. The Dow Jones Industrial Average climbed nearly 190 points, while the S&P 500 closed at its highest level since April 2022.

Here's how the market settled on Monday:

S&P 500 Index (SPY  ): +0.93% or +40.07 points to 4,338.93

Dow Jones Industrial Average (DIA  ): +0.56% or +189.55 points to 34,066.33

Nasdaq Composite Index (QQQ  ): +1.53% or +202.78 points to 13,461.92

Monday's gains follow the S&P 500 entering a bull market last week, as the broader market index rose 20% above its October 2022 lows, and closed at its highest level since August. The Nasdaq also rose for its seventh-straight week as more market optimism towards artificial intelligence has helped propel tech stocks higher in recent weeks.

Goldman Sachs strategist David Kostin joined others on Wall Street last week in raising the firm's 2023 price target for the S&P 500 to 4,500 from 4,000, citing new forecasts for better U.S. economic conditions and earnings that total $224 per share for the index.

"The P/E multiple of 19x is greater than we expected, led by a few mega cap stocks," Kostin and team wrote in a note on Friday. "But prior episodes of sharply narrowing breadth have been followed by a 'catch-up' from a broader valuation re-rating. The potential profit boost from AI has expanded the right tail for equities, while left tail risks from recession and hawkish Fed policy remain."

Looking ahead towards Tuesday's Consumer Price Index reading for May, analysts expect inflation to cool to an annual rate of 4% -- down from April's reading of 4.9%. If the reading meets the market's expectations, it will help reinforce estimates that the Fed will not raise interest rates at the conclusion of its June meeting on Wednesday. Traders are currently pricing in a nearly 75% chance that there will be no hike, according to the CME Group's FedWatch tool.

For Monday news, General Motors (GM  ) announced it plans to invest $632 million for production of its next-generation full-size pickup trucks at its Fort Wayne, Indiana plant, marking the automaker's third such announcement regarding next-gen trucks and SUVs in the past week. These recent string of investments total more than $2.1 billion.

Carnival (CCL  ) shares jumped on Monday after JPMorgan analyst Matthew Boss upgraded the cruise line operator to Overweight from Neutral.

"CCL has an opportunity to drive improved brand clarity and pricing power with increased investment in advertising (vs. historical underinvestment vs peers) and given a smaller capacity growth profile, this provides a faster pathway for management to focus on de-levering the balance sheet," Matthew Boss wrote in a note.

Looking ahead, market participants will react to key inflation data out Tuesday morning as speculate on the central bank's next policy decision as the Federal Open Market Committee kicks off their June meeting.