U.S. stocks rallied Monday, lifting the Dow Jones Industrial Average by more than 550 points, as shares of everything from banks to manufacturers climbed.

Monday’s moves marked a comeback for stocks after investor anxieties about the Federal Reserve’s path for monetary policy sent the Dow on its biggest decline since late October.

Initial worries centered around Fed officials signaling they may raise interest rates sooner than anticipated due to the rebounding economy. Investors who are optimistic about stocks say that faster growth and inflation in the coming months are likely to support the market overall—even if long-term rates rise slightly.

“For most investors, looking across the asset landscape, there still remains no alternative to equities,” said Fahad Kamal, chief investment officer at Kleinwort Hambros. “Hiring is happening and normality is returning, and all of that is really positive for…

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