US stocks rallied on Monday after a bruising sell-off as investors looked ahead to a big week of events, with the Federal Reserve's latest policy decision and earnings from Apple (AAPL) on the calendar.

The benchmark S&P 500 (^GSPC) climbed 1.2% at the closing bell, after officially entering correction territory, while the Dow Jones Industrial Average (^DJI) jumped about 1.6%, or more than 500 points, after dropping about 1.2% at its last close.

The tech-heavy Nasdaq Composite (^IXIC) finished the day up roughly 1.2% in the wake of a downbeat week driven by mixed results for Big Tech earnings.

Eyes are now on the US central bank and Apple, the biggest company on the S&P 500, to lift spirits after a tough few months for the stock market. Also closely watched is the US jobs report for October, due Friday.

A jump in the Fed's preferred inflation metric has raised expectations that policymakers will stick to their "higher for longer" stance and hold interest rates steady in their decision on Wednesday.

Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards

Apple is set to release its quarterly results on Thursday after the market close, with any impact from China's moves to constrain the use of iPhones in focus.

Meanwhile, investors are weighing what McDonald's earnings out Monday say about the US consumer, which has proven resilient in the face of high borrowing costs. The burger giant beat earnings estimates for the third quarter as higher menu prices boosted sales growth.

In commodities, benchmark oil prices fell as Israel's measured start to its campaign in Gaza eased fears that the conflict will escalate throughout the Middle East — seen as encouraging investors to dive back into markets. West Texas Intermediate futures (CL=F) lost about 3.6% to reach $82.50 a barrel, while Brent futures (BZ=F) shed roughly 3% to trade around $87.84 a barrel.

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