US stocks trade higher after last week's drop

US stocks rose moderately Monday as investors looked to recover some of last week's steep losses but anxiously watched the direction of oil prices.

After wavering, light, sweet crude rose 64 cents to $136 a barrel in premarket electronic trading on the New York Mercantile Exchange. The rise came even after Saudi Arabia said over the weekend at a summit that it was willing to boost production again if consumers require more oil.

With little economic data scheduled for Monday, investors will likely be focusing on the price of oil and positioning themselves ahead of the Federal Reserve's two-day meeting, which lets out on Wednesday. Most investors expect the Fed to keep its key federal funds rate on hold, and in its economic statement, emphasize the rising threat of inflation.

In the first hour of trading, the Dow Jones industrial average rose 12.86, or 0.11 percent, to 11,855.55.

Broader stock indicators also rose. The Standard & Poor's 500 index rose 3.14, or 0.24 percent, to 1,321.07 and the Nasdaq composite index rose 11.30, or 0.47 percent, to 2,417.39.

Bond prices rose. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 4.15 percent from 4.17 percent late Friday. The dollar weakened against most other major currencies, while gold prices rose.

(Agencies)