US stocks open higher ahead of the much awaited Fed meeting

Major US equity indices opened higher on Tuesday, both the Dow Jones Industrial Average (DJIA) and the S&P 500 moving to a fresh record territory as investors look forward to the start of the much awaited Federal Reserve's two-day monetary policy meeting. 

At the time of reporting, DJIA gained around 85-points to 19,880, while the broader S&P 500 Index rose over 13-points to 2,270. Meanwhile, tech-heavy Nasdaq Composite Index added nearly 50-points to 5,460. Rising crude oil prices was seen helping energy companies to continue with the recent advance and is also contributing towards boosting investor sentiment.

In absence of any major economic releases from the US, investors’ attention will remain glued to the Fed's monetary policy decision, slated to be announced during NY session on Wednesday. The central bank is widely expected to raise interest rates by 25 bps, but the big question remains over the tone of the accompanying statement. Hence, focus would be on the updated economic and interest rate forecasts, which will be closely scrutinized to gain fresh insight over the central bank's monetary policy outlook and the pace of rate increases in 2017, which would drive investors' appetite for riskier assets - like equities.

In currency markets, the overall US Dollar Index retreated further on Tuesday but was confined in a narrow range around 101.00 handle. Meanwhile, the crude oil managed to recover early lost ground but was seen struggling to build on to its recent gains, with WTI crude oil holding its neck just above $53.00/barrel mark.