U.S. stock indexes are on the rise today as investors await the Federal Reserve's announcement on potential changes to interest rates. The S&P 500 gained 0.8%, the Dow Jones Industrial Average rose by 262 points (0.6%), and the Nasdaq composite increased by 1%.

Despite recent turbulence in the market, there is a period of calm currently observed. Concerns surrounding President Trump's economic policies, focusing on job creation and federal workforce reduction, have added uncertainty. The continuous announcements on tariffs and other measures have led to hesitancy among businesses and consumers, potentially impacting spending.

The Federal Reserve could potentially lower interest rates to stimulate the economy in case of weakness, with the current rate ranging between 4.25% and 4.50%. However, the situation is complex this time, as rate cuts could also contribute to inflation, which is already a concern due to tariffs. The Fed faces challenges in addressing a scenario of "stagflation," characterized by economic stagnation amid high inflation.

Most investors expect the Fed to maintain the current interest rate as it assesses the situation. Attention is now turning to the forecasts that the central bank will release post-meeting, providing insights into future interest rates, economic growth, and inflation trends.

Market participants anticipate multiple rate cuts by the end of 2025. Stocks like Nvidia and Tesla have shown positive movements lately, with Nvidia recovering losses and Tesla rebounding from recent declines. Tesla's performance has been affected by concerns over CEO Elon Musk's cost-cutting measures.