US stocks rise ahead of Federal Reserve interest rates decision

US stocks closed higher as investors try to look beyond the uncertain timing of a possible interest rate increase by the Federal Reserve.

The Dow Jones industrial average closed up 125 points, or 0.8%, to 16,510 on Monday.

The Standard & Poor’s 500 index rose eight points, or 0.5%, to 1,966 and the Nasdaq composite gained one point, or less than 0.1%, to 4,840.

Stocks were rebounding from sharp falls on Friday. Those declines were caused by concerns that the Fed’s decision to keep interest rates at record lows signalled a weak outlook for global growth.

Drugmakers slumped on concern of new regulations to control pricing following comments from Democratic presidential front-runner Hillary Clinton.

Bond prices fell, pushing up the yield on the 10-year benchmark Treasury note to 2.20% from 2.13% on Friday