Stocks close higher ahead of Federal Reserve meeting

(CNN) — US stocks alternated between slight losses and modest gains Monday before eventually closing higher ahead of the Federal Reserve’s two-day policy meeting later this week.

The Dow closed up about 197 points, or 0.6%, while the S&P 500 and Nasdaq Composite rose 0.7% and 0.8% respectively.

The bond market reached its highest level in 10 years ahead of what is likely to be a decision by the central bank to raise interest rates by another three-quarters of a percentage point this week. The benchmark US 10-year Treasury note reached 3.5%, its highest level since 2011. The two-year Treasury note reached 3.9%, a 15-year high.

In addition to the Fed meeting, 16 other global central banks, including the Bank of England, are expected to further tighten monetary policy this week. Monetary policy meetings will also take place in Sweden, Norway, Switzerland, Japan, Brazil, Turkey, South Africa, Indonesia, Taiwan, Guatemala, Egypt, the Philippines and other countries.

Correction: An earlier version of this story misstated the number of years in which the bond market had reached its highest level. It was 10.

The-CNN-Wire