NEW YORK (CNNMoney)
The Dow Jones industrial average gained 0.5%, while the S&P 500 and the Nasdaq both rose about 0.6%.
Concern about Cyprus has kept investors on edge this week but Wednesday also brings the latest interest rate statement and economic forecasts from the Federal Reserve.
Ongoing stimulus from the central bank has been partly responsible for fueling the recent U.S. stock rally. So far this year, all three major indexes remain up between 7% and 10%.
The Fed is not expected to announce any significant changes to its current monetary policies, when it releases its statement at 2 p.m. ET. But investors always pay close attention to chairman Ben Bernanke's remarks for any hints on what the Fed will do next.
Despite stronger economic data, Bernanke is expected to reiterate his view that the economy is weak and needs support.
"We expect chair Bernanke to sound relatively dovish in his press conference," Camilla Sutton, currency strategist at Scotia Capital, wrote in her daily note to clients.
Related: Bracing for Bernanke buzzkill
Investors will also be monitoring developments out of Cyprus Wednesday after lawmakers voted against a tax on bank deposits, calling a bailout deal into question.
Worries about Cyprus sparked a choppy trading day Tuesday, with U.S. stocks ending mixed. But investors have been increasingly sanguine about the prospect of financial contagion spreading from the tiny island nation to larger economies in the euro area.
"Cyprus has a bit of time to go back to the drawing board and come up with a solution to its problems," said Nick Stamenkovic, strategist at RIA Capital Markets in Edinburgh, Scotland. "The market seems to take the view that the problem is relatively contained."
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In corporate news, FedEx (FDX, Fortune 500) widely missed earnings estimates and cut its outlook for the year. The company is often viewed as a bellwether for the broader economy due to the global scope of its business. FedEx also said it may temporarily ground some aircraft. Shares of rival UPS (UPS, Fortune 500) also fell.
Shares of Lennar (LEN)rose 1% after the homebuilder reported better-than-expected earnings.
General Mills (GIS, Fortune 500) reported earnings that missed forecasts and issued lukewarm guidance.
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Adobe Systems (ADBE) shares jumped a day after the graphics software maker beat earnings estimates.
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European markets were higher in morning trading, while Asian markets posted gains. The Shanghai Composite added 2.7% and Hong Kong's Hang Seng advanced 1%. Tokyo's stock market was closed for the first day of spring.
First Published: March 20, 2013: 9:44 AM ET
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