The U.S. Federal Reserve wraps up its two-day meeting later in the day and is widely expected to keep interest rates steady in a range of 5.25 percent to 5.50 percent, after raising them from near zero in about a year and a half in a bid to reduce inflation.

While many investors believe the Fed will finish raising rates this year, some still believe that another rate hike is possible in November, or possibly December.

Last week's data showed that core inflation eased, but higher oil prices led to headline inflation recording its fastest growth rate in 14 months.

All eyes will be on Fed Chairman Jerome Powell's press conference after the rate announcement for any additional clues about future policy, as well as the Fed's latest estimates of the economy, including year-end forecasts for inflation, unemployment and GDP.

Market Movements

The Dow Jones Industrial Average rose 144.77 points, or 0.42 percent, to 34,662.50. The S&P 500 rose 11.38 points, or 0.27 percent, to 4,456.07.

The Nasdaq Composite climbed 18.98 points, or 0.14 percent, to 13,697.06.