Indices and oil rise ahead of economic data on inflation and a Federal Reserve interest rate decision later in the week.

Investors are anticipating additional economic data on inflation and a Federal Reserve interest rate decision later this week, which is why the S&P 500 increased on Monday.

The S&P 500 increased by 1.4%, the Dow Jones Industrial Average increased by 1.6% and the Nasdaq Composite increased by 1.3%.

Oil prices were supported by lessening worries about energy demand as China, the world's largest oil importer, moved further away from its zero-COVID policy, leading to gains for energy companies. Beijing has stated plans to discontinue monitoring some travel activity, which could reduce the need for passengers to the affected COVID zones to undergo quarantine.

Additionally, regardless of the technicalities, the ongoing blockage of a pipeline supplying Canadian heavy crude to the Gulf Coast of the United States also supported the price of oil.

Following the greatest U.S. crude oil disaster in a decade, more than 14,000 barrels of oil leaked on the Keystone oil pipeline last week. There was no timeframe for how long it would take Canadian company TC Energy Corp to clean up and restart the pipeline.

Investors turned their attention to upcoming data due on Tuesday, which is expected to reveal lessening pricing pressures, while technology stocks, which generally declined 3% last week, shrugged off an ongoing rise in Treasury yields.

According to economists' predictions, the consumer price index increased 0.3% in November and 7.3% over the previous year, versus 0.4% and 7.7%, respectively, in the previous month.

However, it is not anticipated that expectations for further softening inflation will change the Fed's plans for its monetary policy, with many anticipating that it will signal a higher for longer interest rate regime while slowing the rate of rate increases.

In the banking world, rising banking stocks gave financials a boost. Meanwhile, Goldman Sachs Group's gains were curtailed when Bloomberg reported that the investment bank is starting to lay off more employees as it restructures its consumer banking division.

In corporate news, the loss-making electric vehicle manufacturer Rivian Automotive fell 6% after postponing plans to produce electric vans in Europe.

(Sources: investing.com, reuters.com)