The Fed is also expected to provide an update on its economic projections for 2013-2015. The Fed's latest projections, made in March this year, saw real GDP growth at around 2.6 percent in 2013 and 3.2 percent in 2014. In terms of unemployment, the Fed projected a rate of around 7.4 percent in 2013, improving to around 6.9 percent in 2014.
"If, and how, these forecasts change could send an important signal about the Fed's near term intentions," said Scicluna.
In company news, Smithfield Foods advanced after shareholder Starboard Value said the pork processor should be broken up rather than be sold to Chinese meat company Shuanghui International. The activist shareholder, which disclosed a 5.7 percent stake in the company, said Smithfield might be worth "well in excess" of the $34 per share offered by Shuanghui if it split into hog production, pork and international units and shopped the businesses separately.
Netflix soared to lead the S&P 500 gainers after the online move-streaming company struck its largest-ever original content deal with DreamWorks Animation.
Facebook edged higher after the social-networking giant sent out invitations to members of the press for a "new product" event this Thursday.
Investors will also be focused on Apple, after the tech giant's stock closed below its 50-day moving average of $434.76 last Friday, after trading on either side of the level all week.
(Read More: Apple Received up to 5,000 US Data Requests in 6 Months)
Brent crude oil futures touched a 10-week high and U.S. oil hit a nine-month high as tensions in the Middle East escalated, but prices finished slightly lower on the day. Meanwhile, a CNBC sentiment survey found that crude prices may return to $100 a barrel this week.
And JPMorgan strategists said in a note that investors are ignoring the possibility of a price shock due to Mideast tensions that could sent brent crude prices to $115 a barrel this year.