NEW YORK (MarketWatch) — U.S. equity investors bid up prices on Tuesday ahead of the Federal Reserve’s two-day policy meeting, driving the S&P 500 and the Nasdaq Composite into positive territory.

Federal Reserve officials are widely expected to announce the end to the 2008-era bond-buying stimulus program, while leaving the language on the statement broadly dovish. That generally means the central bank would be quick to signal a prolonged period of low rates, if the economy proves dicey.

The Nasdaq Composite COMP, -1.07% outperformed the main benchmark, rising 78.36 points, or 1.8%, to 4,564.29.

The S&P 500 SPX, -1.11% rose 23.42 points, or 1.2%, to 1,985.05, turning October into a perfect V-shaped recovery. Broad-based gains were led by the energy and industrials sectors, which recovered some of the steep losses from Monday.

The Dow Jones Industrial Average DJIA, -0.87% jumped 187.8 points, or 1.1%, to 17,005.75, closing above the 17,000 level for the first time since Oct 3.

The resurgence of the stock market comes on the heels of one of the more tumultuous months in trading, which was characterized by wild triple-digit gains and losses early in October. Now what started out as a month of brutal carnage for stocks is beginning to look like a renaissance even as the U.S. central bank appears ready to put an end to its six-year long, bond-buying stimulus program.

Read: What to make of this roller-coaster stock market

Oil Stocks: Buy here or stay clear?

Throw ’em a bone: “Markets are trading into the [Federal Open Market Committee] statement later this week, expecting an end to quantitating easing, but dovish wording (they basically expect the FOMC to throw them a bone),” said Wouter Sturkenboom, strategist at Russell Investments in London, in emailed comments.

A decision after the two-day FOMC meeting comes Wednesday.

Investors did not dwell on mixed bag of economic reports, giving them a broad pass. U.S. consumers have regained confidence in the short-term outlook for the economy and labor market, and are more optimistic about their future earnings potential, according to the latest data from the Conference Board.

Orders for U.S. durable goods fell in September for the second month in a row as demand waned for a variety of products including autos, aircraft, computers and heavy machinery. The up-and-down airline category was a chief culprit, with orders sinking 16.1% after a 74% drop in August and a whopping 315% spike in July. Read: Businesses step up investment. Will it last?

U.S. home prices nudged up by less than forecast in August, according to S&P/Case-Shiller’s 20-city composite index released Tuesday.

Stocks to watch:

Tesla Motors Inc. shares rallied 9.5% after the company unveiled a new leasing deal over the weekend. The Wall Street Journal reported the deal was aimed at stemming a decline in U.S. sales, and Elon Musk, the electric car manufacturer’s chief executive, took to Twitter to deny that sales were down.

Kohl’s shares slid 6.6% after it warned its full-year results will come in at the low end of its previously issued guidance.

AutoNation Inc. shares rallied 6.9% after it reported third-quarter results that topped expectations.

Twitter Inc. TWTR, +2.03% was hit by downgrades from several analysts on Tuesday, leading shares to drop 9.8%. The social-media company disappointed investors after its fourth-quarter revenue forecast came slightly under analysts’ expectations, and growth in new users slowed in the third quarter.

Apple Inc. AAPL, -3.17% shares rose 1.6% after Alibaba Group Holding Ltd.’s BABA, -1.20% chief executive officer Jack Ma said he was interested in cooperating with the iPhone maker on financial payments. Alibaba shares jumped 1.9%.

Madison Square Garden Co. US:MSG shares jumped 11% after the company said late Monday that it was exploring the possibility of splitting into two publicly traded companies to unlock value in its sports franchises.

Read more about the day’s notable stocks in Movers & Shakers column.