Stocks fell on Monday, swinging between gains and losses in a volatile trading session ahead of the Federal Reserve’s two-day policy meeting later this week.

The Dow Jones Industrial Average was last down 67 points, or 0.22%, but was well above its low of 263 points earlier in the session. The 30-stock index swung between gains and losses, rising nearly 130 points to session highs. The S&P 500 and Nasdaq Composite last fell 0.29% and 0.4%, respectively.

Yields rose ahead of the Fed’s likely decision to raise its benchmark rate another 75 basis points to stifle inflation later this week, with the 10-year Treasury yield rising above 3.51% and hitting its all-time high. high level in 11 years.

After brief hope over the summer that the Fed might end its aggressive tightening campaign, investors sold stocks again, fearing the central bank might go too far and tip the economy into a tailspin. a recession.

Investors are focused on the Fed’s monetary policy meeting due to start on Tuesday, during which the central bank is expected to raise interest rates another 75 basis points. Investors are also looking for guidance on corporate earnings ahead of the start of the next reporting season in October.

“It’s been a very quiet session so far,” Vital Knowledge’s Adam Crisafulli wrote in a note to clients. “Stocks have climbed from their lows since earlier in the morning, but sentiment is still very gloomy. The consensus playbook for the week seems to be anticipating a brief rally around the FOMC, which most people expect to see. use it as an opportunity to post profits in preparation for further decline (a return to June lows is seen by many as inevitable).”

Six of the 11 major S&P 500 sectors rose or traded flat, led by consumer discretionary, industrials and materials. Financials also advanced, with some investors betting that higher rates could benefit their bottom line. Health care lagged, down 1.5%.

Stocks tumbled last week as investors reacted to a hotter-than-expected inflation report and a dismal warning from FedEx about a “significantly worsened” global economy. The major averages posted their fourth weekly loss in five weeks and hovered near two-month lows.

Beyond the Fed meeting, there are only a few economic data releases on deck this week, including August Housing Starts on Tuesday and First Jobless Claims on Thursday.

—CNBC’s Patti Domm contributed reporting.