Stocks are closing higher on Wall Street at the start of a busy week where central banks are likely to unload the year's final barrage of interest rate hikes.

The S&P 500 rallied 1.4% Monday. On Wednesday, markets expect the Federal Reserve to announce a more modest increase to rates than it has been pushing through recently.

Other central banks around the world are also expected to raise rates by half a percentage this week, including Europe's.

Higher rates slow the economy and risk causing a recession if they go too high, all while dragging down prices of investments.