Stocks rose on Monday as market participants were encouraged by new artificial intelligence news ahead of the Federal Reserve's policy meeting this week. The Dow Jones Industrial Average climbed over 75 points, while the S&P 500 Index and Nasdaq Composite added 0.6% and 0.8%, respectively.

Here's how the market settled on Monday:

S&P 500 Index (SPY  ): +0.63% or +32.33 points to 5,149.42

Dow Jones Industrial Average (DIA  ): +0.20% or +75.66 points to 38,790.43

Nasdaq Composite Index (QQQ  ): +0.82% or +130.27 points to 16,103.45

Moving Markets: Nvidia (NVDA  ) kicked off its GTC Conference on Monday, with the chipmaker expected to showcase new products and innovations in the AI industry. CEO Jensen Huang is also set to give a keynote speech later on Monday.

Market participants are also trading ahead of the central bank's next two-day policy meeting, with the Fed widely expected to hold interest rates at their current target range of 5.25% to 5.50% on Wednesday.

In the News: Shares of Alphabet (GOOG  ) (GOOGL  ) and Apple (AAPL  ) rose on Monday on reports that the tech giants are in talks to license Google's AI chatbot Gemini for future iPhones. Citing people familiar with the matter,Bloomberg reported the companies are "in active negotiations" for Gemini to power new features set to be released on iOS iPhone software later this year.

Back in February, Apple CEO Tim Cook said the company is "investing significantly" in AI during the Apple's annual investor day. "Later this year, I look forward to sharing with you the ways we will break new ground in generative AI, another technology we believe can redefine the future," Cook said, quoted by CNBC.

Bank of America analyst Wamsl Mohan wrote in a Monday note: "A partnership that can incorporate GenAI features faster into iPhones (software features in 2024) and incremental hardware features in 2025 would be a positive for both Apple and for the potential partner if Apple ends up with an agreement."

Wall Street Outlooks: Morgan Stanley said in a report on Monday that the U.S. market rally is set to widen this year, with the industrials sector currently demonstrating the strongest breath profile versus a month ago, while energy, materials, real estate and utilities have showed the greatest breadth improvement month-over-month.

"The recent broadening within large cap leadership may be how the market is dealing with the inconsistency of higher rates and still elevated multiples for the large cap equity indices," wrote strategist Michael Wilson in the report.

Separately, UBS strategist Vincent Heaney wrote in a note on Monday that the firm expects the S&P 500 will end the year modestly higher as the broader market index continues to reach record after record from AI tailwinds and Nvidia led tech rally.

"Markets are likely to be choppy amid shifting expectations for central bank policy easing," Heaney wrote. "But we think lower interest rates, positive economic growth, and growing corporate earnings should create a supportive backdrop for equities in 2024."

"Quality companies -- with strong balance sheets, high profitability, and resilient earnings -- should be best positioned to deliver performance, especially if economic growth slows," Heaney added.

For Tuesday: Investors will react to news from Nvidia as well as fresh housing market data for February ahead of the Fed's March policy decision on Wednesday.