NEW YORK (CNNMoney.com) -- Stocks rose Wednesday but investors had their eyes trained on Thursday's Federal Reserve meeting and policy statement.

The Dow Jones Industrial average (up 48.82 to 10,973.56, Charts) added about 0.5 percent and the broader Standard & Poor's 500 (up 6.80 to 1,246.00, Charts) index jumped nearly 0.6 percent.

Stocks jumped in the final hours of trading after a mostly lackluster session.

The Nasdaq composite (up 11.59 to 2,111.84, Charts) also climbed about 0.6 percent.

Stocks were flat most of the day but enjoyed a bounce late in the session as the Fed's two-day meeting got underway.

Fed policy-makers are widely expected to raise the target for a key short-term interest rate to 5.25 percent at the conclusion of their meeting Thursday afternoon.

As in previous meetings, though, investors will be focusing more on the Fed's statement and looking for clues about what the central bank intends to do with interest rates in the months ahead. (Full story)

Many economists expect the Fed to raise rates again in August and some think Bernanke & Co. could even hike rates into the fall.

"Wall Street is holding its breath. Everyone is holding back for what the Fed will do tomorrow afternoon," said Fred Dickson, chief market analyst at D.A. Davidson & Co.

Stocks generally abhor higher interest rates, which raise the cost of borrowing and can erode corporate profits. Investors are also concerned the Fed may cripple economic growth by raising rates too high.

In addition to the policy statement, investors will get a look at the final reading on first-quarter gross domestic product, the broadest measure of the nation's economic activity. A weekly report on jobless claims also is due.

As of 5 p.m. ET, Nasdaq and S&P futures pointed to a negative opening for stocks Thursday.

On the 30-share Dow, with 20 components rose and 10 declined.

General Motors, up nearly 3 percent, was among the biggest gainers on the blue-chip index. The world's largest automaker had tumbled 7 percent the previous session on concerns of lower industry wide sales. (More on GM's stock)

Elsewhere, shares of retailer J. Crew (up $5.55 to $25.55, Charts) surged 28 percent in their market debut on the New York Stock Exchange. The company's initial public offering priced above expectations at $20 a share.

Shares of Apple (down $1.41 to $56.02, Charts) fell about 2.5 percent after an analyst who covers the company warned the next generation of iPods could be delayed.

Nike (down $3.91 to $79.72, Charts) shares fell nearly 5 percent after the sneaker maker said its quarterly net income declined and profit margins fell below expectations.

Shares of Warner Music Group (up $0.88 to $28.11, Charts) rose about 3 percent after the company's $4.6 billion bid for British music company EMI Group was rejected.

At the same time, EMI said it had raised its offer for Warner Music to $4.6 billion, or $31 a share, a nearly 14 percent premium from Tuesday's close.

U.S. light crude oil for August delivery rose 27 cents to settle at $72.19 a barrel on the New York Mercantile Exchange.

The government's weekly reading on crude inventories showed gasoline and crude supplies fell more than expected, lifting oil shares.

The Amex Oil Index (up $20.65 to $1,123.92, Charts) added nearly 2 percent.

Market breadth was positive. On the New York Stock Exchange, advancers beat decliners by a margin of three to two on volume of 1.48 billion shares. On the Nasdaq, winners beat losers by a margin of four to three as 1.62 billion shares changed hands.

COMEX gold for August delivery fell $3.90 to $580.50 an ounce.

Treasury prices fell, lifting the yield on the benchmark 10-year note to 5.24 percent, up from 5.20 percent late Tuesday. Bond prices and yields move in opposite directions.

In currency trading, the dollar rose slightly versus the euro and the yen.

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