STORY: Wall Street's main indexes finished a choppy session higher on Monday, as investors wait to see how aggressively the Federal Reserve will hike interest rate hikes at this week's policy meeting.

The Dow Jones Industrial Average rose and the S&P 500 both gained better than half a percent, while the Nasdaq Composite rose three quarters of a percent.

The big action was in the bond market, where prices sank, sending the yield on the benchmark 10-year U.S. Treasury to its highest level since 2011, as investors adjusted for the likelihood that the Federal Reserve will hike rates higher and for longer than previously expected as inflation remains near multi-decade highs.

"Everything seems to be correlated now. You see it with gold, oil, bitcoin, you know every sector. Everything seems to be correlated. Everything is risk-off."

Greg Swenson of Brigg Macadam said that falling bond prices and rising yields would make fixed income more attractive, as he expects equities will give back yet more of their gains from over the summer.

"...the bond market has been banged up, especially since Jackson Hole. But the equity market has only given back about half of the gains from that bizarre period from June to August where everybody thought inflation was over and the Fed would start easing, soon, and the Fed would start easing next year. So, obviously that was a difficult correction. The last few weeks have been rough, but it still hasn't given back all of the gains."

Healthcare struggled Monday, dragged down by a fall in shares of vaccine maker Moderna a day after President Joe Biden said in a CBS interview that "the pandemic is over."

Industrial stocks rebounded after a sharp drop on Friday, while banks also gained. Tech heavyweights Apple and Tesla rose to provide the biggest boost to the S&P 500 and the Nasdaq.

Worries of Fed tightening have led to a 19% decline in the S&P 500 this year, with a recent dire earnings report from delivery firm FedEx Corp, an inverted U.S. Treasury yield curve and warnings from the World Bank and the IMF about an impending global economic slowdown adding to the woes.