01:06 PM EDT, 03/19/2024 (MT Newswires) -- US equity indexes rose in choppy midday trading Tuesday as the countdown began for the Federal Reserve to release updated economic projections and outlook for interest rates this year.

The S&P 500 rose 0.4% to 5,171.8, with the Dow Jones Industrial Average up 0.8% higher at 30,094.1, and the Nasdaq Composite 0.3% higher at 16,154.3. Barring communication services and real estate, all the other sectors were in the green intraday. Energy led the gainers.

The two-day monetary policy meeting began Tuesday, with a decision on interest rates likely on Wednesday afternoon. While the Fed will likely leave borrowing costs at current levels, it will provide cues on the policy path ahead. The dot plot may downshift to two rate cuts this year from three previously set out in the December projections, reflecting recent hotter-than-expected inflation data for February.

The US Treasury two-year yield fell 3.4 basis points to 4.70%, and the 10-year yield declined 2.6 basis points to 4.31%.

In overseas news, the Bank of Japan raised interest rates for the first time in 17 years, according to a note from Deutsche Bank, but the yen still weakened by 1.1% against the dollar. The BoJ lifted rates to zero-to-0.1%, from minus-0.1%. They also scrapped the so-called yield curve control and ended their off-late dormant purchases of exchange-traded funds and real estate investment trusts.

The weakening of the yen is not a surprise because the extent of tightening was "small," Macquarie said in a note. The Fed's "easing" later this year will strengthen the yen.

In US economic news Tuesday, Redbook US same-store sales rose 3.4% from a year ago in the week ended March 16, following a 3% increase in the previous week.

February housing starts rebounded from the previous month to a 1.521 million annual rate, above the 1.440 million forecast in a survey compiled by Bloomberg and 1.374 million reported in January.

Poor weather contributed to a steep decline in January, and marginally better weather in February contributed to a rebound, Jefferies said in a note. "In the longer run, the recent data suggests that conditions for home construction remain steady."

In company news, International Paper ( IP ) said Tuesday it named Andrew Silvernail as chief executive officer, effective May 1. Silvernail joined from KKR (KKR), an investment firm. Shares of International Paper ( IP ) surged 9.7% intraday, the top performer on the S&P 500.

Super Micro Computer ( SMCI ) was shedding 8.9% intraday, the laggard on the S&P 500, after the firm said it filed a registration statement for selling 2 million shares.

West Texas Intermediate crude oil rose 1% to $83.53 per barrel intraday.

Gold fell 0.3% to $2,178.5 per troy ounce, while silver slid 0.5% to $25.13.