Stocks jump as Dow, S&P 500 breaks 3-day losing streak

U.S. stocks closed higher Monday and the Dow broke a 3-day losing streak even as investors continue to calculate the odds of a Federal Reserve interest-rate hike later this year.

The Dow Jones industrial average rose 107.59 points, or 0.6%, to 18,502.99. The Standard & Poor's 500 gained 11.34, or  0.5%, to 2180.38 and the Nasdaq composite index added 13.41, or 0.3%, to 5232.33.

The increases came despite consumer spending growth of only 0.3% in July, according to Commerce Department figures released Monday morning.

Much of the market's focus remains on the trajectory of interest rates, which have not increased for eight months. Federal Reserve Chair Janet Yellen said Friday in a highly-anticipated speech in Wyoming that the case for an increase had "strengthened," leaving open the door for an increase at the Fed's September or December meetings.

Investors are pegging the chances of a September increase at 33% and a December increase at 57%, according to Cumberland Advisors.

"It’s really unclear to us how much of the current rhetoric from the (Fed) is meant to keep markets on their toes and how much is real hike warning," Bespoke Investment Group said Monday in a research note.

On the commodity front Monday, the price of West Texas Intermediate crude oil fell 66 cents to $46.98 a barrel, and the price of Brent crude oil declined 66 cents to $49.26.

Follow Paste BN reporter Nathan Bomey on Twitter @NathanBomey.