02:33 PM EDT, 03/18/2024 (MT Newswires) -- US benchmark equity indexes were higher after midday Monday, as investors looked forward to the Federal Reserve's latest monetary policy decision expected this week.

The Nasdaq Composite was up 1.3% at 16,171 intraday, and the S&P 500 rose 0.9% to 5,162.9. The Dow Jones Industrial Average advanced 0.4% to 38,860.9. All the sectors were in the green, led by communication services.

The central bank's Federal Open Market Committee is scheduled to kick off its two-day meeting Tuesday. Markets are widely expecting policymakers to hold interest rates steady at 5.25% to 5.50% on Wednesday, according to the CME FedWatch Tool, which 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.

"At this point, back-to-back months of accelerating inflationary pressures offer no further evidence of a disinflationary trend with key metrics seemingly leveling off near 4%, more than double the Fed's 2% target," the brokerage wrote. "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 3.8 basis points to 4.34% intraday, while the two-year rate advanced 2.2 basis points to 4.75%.

In economic news, 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.

"Buyer demand remains brisk and we expect more consumers to jump off the sidelines and into the marketplace if mortgage rates continue to fall later this year," NAHB Chairman Carl Harris said. "But even though there is strong pent-up demand, builders continue to face several supply-side challenges."

West Texas Intermediate crude oil rose 1.9% to $82.78 per barrel intraday.

In company news, Tesla (TSLA) shares rose 6.4%, 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.

Apple (AAPL) is in talks to license Alphabet (GOOG, GOOGL) unit Google's Gemini artificial intelligence engine and power the generative AI features Apple is seeking to build into the iPhone's software this year, Bloomberg News reported late Sunday. Alphabet's class A and C shares were up more than 4.5% each intraday Monday, among the best performers on the S&P 500 and the Nasdaq. Apple rose 1.4%, among the top gainers on the Dow.

Gold was up 0.1% at $2,163.40 per troy ounce, while silver slid 0.4% to $25.27 per ounce.