Markets welcomed St. Patrick's Day in a way that would make shorts green with envy, as all three major indices closed firmly in positive territory. The DOW rose 353.44 points (0.85%) to 41,804.16, the S&P 500 gained 36.18 points (0.64%) to 5,675.42, and the NASDAQ increased by 54.58 points (0.31%) to 17,808.24. The positive momentum comes as investors prepare for the Federal Reserve's two-day meeting, which is expected to provide crucial insights into the U.S. economy's trajectory.

Fed Meeting Outlook

Looking ahead, investors are eagerly anticipating the Federal Reserve's two-day meeting, which begins on March 18. While expectations are that there will be no change in the current federal funds rate (4.25% - 4.5%), analysts are keen to see how Fed policymakers view the U.S. economy. The quarterly Summary of Economic Projections will provide insight into what the Fed's Governors and Bank Presidents expect regarding economic growth, unemployment, inflation, and the policy rate over the next several years.

Read: Fed Meeting Preview: Will Powell Deliver a Dovish Shift or Disappoint Markets?

Goldman Sachs analysts recently told clients: "We expect the FOMC's median economic projections to show a 0.3pp upward revision to 2025 core PCE inflation to 2.8% and a 0.3pp downgrade to 2025 GDP growth to 1.8%, mainly reflecting the tariff news. We have revised our own forecasts by more than this (0.5pp in both cases), but FOMC participants are likely to adjust a bit more cautiously until tariff policy becomes clearer."

Nvidia's Big Show

On Tuesday, investors will watch nvidia CEO Jensen Huang deliver the keynote address at this year's Nvidia GTC. The address is scheduled for 1 PM ET and marks the beginning of several discussions about advancements in AI chip technology. Huang's keynote is expected to highlight Nvidia's latest innovations in AI and accelerated computing, which are poised to revolutionize various industries.

Read: Nvidia’s Quantum Day at GTC 2025: A Game-Changer for AI and Quantum Computing

Wednesday, March 20, is Quantum Day, which will showcase Nvidia's commitment to advancing quantum computing and its integration with artificial intelligence. A key focus of Quantum Day will be Nvidia's potential adoption of co-packaged optics (CPO) technology in its Quantum InfiniBand networking portfolio. This technology is expected to significantly enhance the performance and efficiency of AI data centers, paving the way for more advanced AI applications.

Economic Data Updates

Economic data updates being released Tuesday morning include Housing starts and Building permits at 8:30 AM Eastern. Housing starts are forecast to be down 1.9% compared to January, when housing starts in the US sank 9.8% month-over-month. Industrial production numbers will also be updated, with consensus expectations projecting a slight 0.2% increase in the latest monthly industrial production figures.