File Photo: Traders on the floor of the New York Stock Exchange. AFP
While the Fed is widely expected to cut interest rates on Wednesday, markets are also looking for clues from Federal Reserve Chair Jerome Powell on subsequent decisions.
"With Powell, it's not so much what he does, but really what he says going forward is what's going to matter, and that's going to move the needle," said Adam Sarhan of 50 Park Investments.
Markets have been on a tear in recent weeks, in part due to confidence that the Fed will further ease monetary policy.
About 35 minutes into trading, the Dow Jones Industrial Average was up 0.5 percent at 47,757.85.
The broad-based S&P 500 added 0.1 percent at 6,881.28, while the tech-rich Nasdaq Composite Index climbed 0.4 percent to 23,729.00.
All three indices finished at records on Monday.
Besides the Fed, markets have also been cheered by signs of improving trade relations. President Donald Trump and Chinese leader Xi Jinping are due to meet in person this week, with the White House talking up the likelihood of an accord.
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