04:49 PM EDT, 03/18/2024 (MT Newswires) -- US benchmark equity indexes rose Monday, as investors looked forward to the Federal Reserve's latest monetary policy decision expected this week.

The Nasdaq Composite increased 0.8% to 16,103.5, while the S&P 500 advanced 0.6% to 5,149.4. The Dow Jones Industrial Average gained 0.2% to 38,790.4. Communication services paced the sector gainers. Only health care and real estate closed lower.

The central bank's Federal Open Market Committee is scheduled to kick off its two-day meeting Tuesday, with a decision on its benchmark lending rate expected Wednesday. Markets are widely expecting policymakers to hold interest rates steady at 5.25% to 5.50%, according to the CME FedWatch Tool. That would mark a fifth straight pause.

The FOMC's updated Summary of Economic Projections could show a reduced forecast for rate cuts this year relative to three cuts outlined in December, Stifel said in a Monday note. "While the Fed hasn't entirely shelved the prospect of a near-term rate reduction, any further acceleration in inflationary pressures will not only keep the Fed sidelined for longer, but also perhaps reinvigorate the conversation for additional rate hikes."

The US 10-year yield rose 2.8 basis points to 4.33% Monday, while the two-year rate advanced one basis point to 4.73%.

Oppenheimer Asset Management said that S&P 500 companies' latest quarterly earnings came in "considerably better" than analyst expectations, up 7.9% year over year on 3.8% revenue growth. A bottom-up analysis pegged earnings growth at 1.3% before the season's start. Only one S&P 500 company is left to report results in the current cycle, according to the firm.

Tesla (TSLA) shares jumped 6.3% Monday, the top gainer on the S&P 500 and the Nasdaq. The electric vehicle maker said Saturday that prices of some of its Model Y vehicles in Europe will increase by approximately 2,000 euros ($2,180) or the local currency equivalent.

Separately, Rivian Automotive (RIVN) said Monday that owners of its EVs can now access more than 15,000 compatible Tesla Superchargers across North America. Rivian closed 3.3% higher.

The US Federal Aviation Administration plans to investigate three recent incidents involving Boeing (BA) 737 planes that were being flown domestically by United Airlines (UAL) and American Airlines (AAL), according to the regulatory body's website. Boeing shares fell 1.5% Monday, the steepest decline on the Dow.

West Texas Intermediate crude oil rose 2.3% to $82.94 per barrel.

US homebuilder confidence unexpectedly increased in March to reach the highest level since July, aided by strong buyer demand, according to data from the National Association of Home Builders and Wells Fargo.

Gold advanced 0.1% to $2,163.90 per troy ounce, while silver slid 0.5% to $25.26 per ounce.