US stocks rebounded on Monday on the heels of the S&P 500's worst week since early 2023, as inflation came back into focus for investors gauging pressures that could influence the size of interest-rate cuts.

The S&P 500 (^GSPC) climbed 0.7%, coming off a drop of 1.7% for the benchmark as major US gauges closed with hefty losses. The Dow Jones Industrial Average (^DJI) jumped 0.6%, or more than 250 points, while the tech-heavy Nasdaq Composite (^IXIC) led the advance with a roughly 0.9% gain.

Stocks were on pace to regain some of the ground they lost after the August jobs report failed to settle a key question: How aggressively will the Federal Reserve lower interest rates? The neither-hot-nor-cold data left Wall Street guessing whether a cut of 25 or 50 basis points is likely at this month's policy meeting.

Read more: Fed predictions for 2024: What experts say about the possibility of a rate cut

At the same time, comments by Fed officials appeared to tilt the market in favor of a 0.25% cut by suggesting that incoming data would have to support the need for larger and further easing.

Focus is now on a fresh consumer inflation print due Wednesday to provide clues to the path of rates. The reading on price pressures will be followed by a producer inflation report on Thursday, the last inflation inputs before the Fed's policy decision on Sept. 18.

The corporate highlight of the week is Apple's (AAPL) annual iPhone event, which kicks off on Monday. It's expected to launch its iPhone 16 line and provide an update on Apple Intelligence AI features, both closely watched as the likes of Huawei challenge the "Magnificent Seven" tech megacap in the market.