Stocks rallied higher on Monday, with the S&P 500 climbing out of correction territory, as market participants looked ahead towards a big week that includes the Federal Reserve's upcoming policy decision, October's jobs report and Apple's (AAPL  ) earnings.

Here's how the market settled on Monday:

S&P 500 Index (SPY  ): +1.20% or +49.45 points to 4,166.82

Dow Jones Industrial Average (DIA  ): +1.58% or +511.37 points to 32,928.96

Nasdaq Composite Index (QQQ  ): +1.16% or +146.47 points to 12,789.48

Monday's rally comes after the S&P 500 fell into correction territory last week, closing the week down 2.5% to pull the broader market index down more than 10% from its 2023 closing high. Still, the S&P is on track for its third-straight negative month for October, which would mark its first streak of that kind since 2020.

On Monday, the World Bank's Commodity Markets Outlook forecasted that the impact of the Israel-Hamas war on oil prices could rise to a range of $93 to $102 a barrel in a "small disruption scenario," while a "medium disruption scenario," which is roughly equivalent to the Iraq war in 2003, could see prices rise at a range of $109 and $121 each.

Moreover, a "large disruption" caused by the ongoing conflict in the Middle East could by comparable to the Arab oil embargo in 1973, expected to drive prices up to between $140 and $157 a barrel, according to the World Bank.

"The latest conflict in the Middle East comes on the heels of the biggest shock to commodity markets since the 1970s-Russia's war with Ukraine," said Indermit Gill, the World Bank's Chief Economist and Senior Vice President for Development Economics, in a statement. "If the conflict were to escalate, the global economy would face a dual energy shock for the first time in decades-not just from the war in Ukraine but also from the Middle East."

On the earnings front, McDonald's (MCD  ) shares rose higher after the fast food giant posted better-than-expected third-quarter earnings on Monday. Notably, same-store sales grew by 8.8% globally during the quarter, topping analysts' forecasts, while U.S. same-store sales rose 8.1%.

"It's clear that our customers continue to seek reasonably priced meals as rising costs persist, and our markets around the world continue to respond," CFO Ian Borden told analysts during the company's earnings call.

SoFi Technologies (SOFI  ) shares popped after the online bank reported strong third-quarter results and raised its full year outlook. The company's revenue beat was boosted by higher-than-expected student loan originations for the quarter, SoFi stated.

Looking ahead, the central bank's upcoming interest rate decision is due out Wednesday, with policymakers expected to hold its benchmark rate at its current level in a range of 5.25% to 5.50%. Friday will offer the Fed more clarity on the health of the U.S. economy and the possible need for further tightening, as investors hope October's jobs report will show some signs of slowing in the labor market.

Apple will also report earnings on Thursday after the bell; the stock is currently in correction territory by being down 14% from its 52-week high as the largest S&P 500 member.

For Tuesday, investors will react to earnings from companies including Pfizer (PFE  ), Caterpillar (CAT  ) and Anheuser-Busch Inbev (BUD  ). For economic releases, S&P Case-Shiller home price index reading for August and consumer confidence reading for October are due out Tuesday morning.