U.S. stocks surged Monday, shaking off a week-long decline ahead of the Federal Reserve's monthly meeting on interest rates later this week.

The Dow Jones Industrial Average jumped 528.35 points, or 1.58%, to close at 34,004.81. The S&P 500 rose 56.21 points, or 1.43%, to close at 3.990.59, and the Nasdaq Composite Index climbed 139.12 points, or 1.26%, to close at 11,143.74.

The central bank's two-day Federal Open Market Committee (FOMC) meeting starts Wednesday and the Fed is expected to raise interest rates 0.5% after four straight hikes of 0.75%. Recent economic data has shown inflation slowing, including the October consumer price index (CPI).

The Dow and S&P 500 had their worst weekly losses since September. The Dow fell 2.77% and the S&P dropped 3.4% for the week ending Friday. The Nasdaq dropped 4%.

Some stocks that rose Monday included Alphabet (GOOG), which closed at $93.56, up $0.49, or 0.53%. Amazon's (AMZN) price of shares rose $1.46, or 1.64%, to close at $90.55

"Financial conditions have eased dramatically since the October CPI reading released last month, so the Fed will likely use the December FOMC meeting to walk those back," Cliff Hodge, chief investment officer for Cornerstone Wealth, told CNBC. "We think the markets are too sanguine on rates after the first quarter and we expect Powell to take a more hawkish tone and for the dots to indicate higher rates for a longer period of time than what is currently being priced in by the futures markets."