By Sara Sjolin and Anora M. Gaudiano, MarketWatch

Fed statement 'gradual enough for the bulls, but signals a more aggressive approach down the road'

U.S. stock-market indexes were trading higher on Wednesday after the Federal Reserve delivered its sixth interest-rate increase since the end of 2015 and kept its outlook unchanged for this year.

The central bank stuck to its prior forecast of three rate hikes in 2018 (http://www.marketwatch.com/story/fed-lifts-rates-in-powells-first-meeting-says-outlook-has-strengthened-2018-03-21), deciding for now to wait until next year to pencil in an additional move over what it had previously indicated. It now expects to raise rates three times as well in 2019, rather that twice.

Live blog of the Fed: Powell press conference: live blog and video (http://www.marketwatch.com/story/fed-interest-rate-decision-and-powell-press-conference-live-blog-and-video-2018-03-21)

What are markets doing?

The S&P 500 was up by 17 points, or 0.7%, to 2,734, with eight of the 11 main sectors trading higher. Energy shares were leading gains, trading up more than 2.6%, as oil futures hit the highest levels in seven weeks. Consumer-staples shares were the worst performers, down about 0.9%.

The Dow Jones Industrial Average rose 206 points, or 0.8%, to 24,953. The Nasdaq Composite Index advanced 36 points, or 0.5%, to 7400.

The cautious trade on Wednesday comes after stocks closed with gains on Tuesday (http://www.marketwatch.com/story/techs-on-track-to-drag-down-us-stocks-for-a-second-day-as-facebook-keeps-sliding-2018-03-20).

What is driving the markets?

The central bank was widely expected to raise interest rates for the first time this year, but the key question was whether new Chairman Jerome Powell and his colleagues would signal that a total of three or four hikes are coming in 2018.

Equity markets sold off sharply in early February, when faster-than-expected wage data ignited speculation the Fed would become more aggressive in tightening monetary policy.

Read:Why the stock market may find an ally in the Fed (http://www.marketwatch.com/story/why-the-stock-market-may-find-an-ally-in-the-fed-2018-03-20)

And don't miss:The Fed easily could make stocks spring higher, says J.P. Morgan (http://www.marketwatch.com/story/the-fed-looks-set-to-friend-this-market-as-facebook-flops-2018-03-20)

The yield on 10-year U.S. Treasury note (http://www.marketwatch.com/story/treasury-yields-rise-ahead-of-fed-decision-2018-03-21) rose 3 basis points to 2.90%. The ICE U.S. Dollar Index was down 0.4% at 90.041.

Powell will follow the rate decision, announced at 2 p.m. Eastern Time, with a news conference half an hour later.

What are strategists saying?

"Markets should like this statement that seems to have just enough for everyone: it's gradual enough for the bulls, but signals a more aggressive approach down the road in 2019-2020," said Ryan Larson, head of equity trading at RBC Global Asset Management.

What data are in focus?

The current-account deficit for the fourth quarter rose by 26% in the fourth quarter (http://www.marketwatch.com/story/us-current-account-deficit-jumps-26-in-4th-quarter-2018-03-21), widening to $128.2 billion from a revised $101.5 billion in the third quarter.

Existing-home sales (http://www.marketwatch.com/story/existing-home-sales-snap-back-even-as-inventory-slides-to-a-fresh-low-2018-03-21)ran at a seasonally adjusted annual pace of 5.54 million in February.

See:MarketWatch's economic calendar (http://www.marketwatch.com/economy-politics/calendars/economic)

Which stocks are in focus?

Shares of General Mills Inc.(GIS) plunged 8.5% after earnings report and outlook that came in below expectations.

Facebook(FB) rebounded, trading 1.8% higher, but the stock was looking at a 8% weekly loss. The selloff for the social-media giant came after it was revealed that Cambridge Analytica, a firm hired to assist President Donald Trump's 2016 campaign, allegedly harvested private information of 50 million Facebook users without their permission.

WhatsApp co-founder Brian Acton said late Tuesday it was now time to delete Facebook (http://www.marketwatch.com/story/whatsapp-co-founder-who-made-billions-from-facebook-now-says-to-delete-it-2018-03-20).

MuleSoft Inc.(MULE) rose 5.8% after Salesforce.com Inc.(CRM) said following Tuesday's closing bell that it is buying the software company (http://www.marketwatch.com/story/salesforce-to-buy-mulesoft-valuing-company-at-65-billion-2018-03-20). Salesforce shares were down 1.8% ahead of the bell on Wednesday.

Southwest Airlines Co.(LUV) shares slumped by 5.1% after the company cut its outlook for first-quarter revenue per available seat mile to be in line with a year ago from previous guidance of a 1% to 2% increase.

Home-building shares (http://www.marketwatch.com/story/home-builder-etfs-rally-as-existing-home-sales-rebound-2018-03-21)rallied after existing-home sales snapped a two-month losing streak. D.R. Horton Inc. (DHI) rose 2.7%, while Lennar Corp. (LEN) advanced 2.6%.

What are other markets doing?

Asian stocks closed mixed (http://www.marketwatch.com/story/asian-markets-bounce-back-ahead-of-fed-meeting-2018-03-20), with Japan's exchange closed for a holiday.

In Europe (http://www.marketwatch.com/story/european-stocks-slip-as-pound-gains-ahead-of-long-anticipated-us-rate-hike-2018-03-21), most indexes traded in negative territory as traders there also stayed on the sidelines ahead of the Fed.

Oil prices (http://www.marketwatch.com/story/oil-extends-gains-on-specter-of-supply-disruption-from-geopolitical-risk-2018-03-21) climbed to trade at their highest levels in nearly seven weeks, after a surprise weekly decline in U.S. crude inventories. May West Texas Intermediate crude jumped 2.4% at $65.69 a barrel.

Gold prices were also rising (http://www.marketwatch.com/story/gold-climbs-from-3-week-low-ahead-of-fed-clues-on-rate-hike-path-2018-03-21), up 1% at $1,325 an ounce.

(END) Dow Jones Newswires

March 21, 2018 14:28 ET (18:28 GMT)