Wall Street ends higher ahead of FOMC meeting

Dow Jones Industrial Average added 0.75% or 99.51 points at 12837.33. Nasdaq Composite gained 1.19% or 34.43 points at 2929.76. Standard & Poor's 500 rose 0.98% or 13.2 points at 1357.98.

In economic data, US housing starts fell 4.8% to a seasonally adjusted rate of 708,000 units in May. But building permits surged to its highest in more than three years.

All eyes are on the outcome of the 2-day FOMC meeting today. Fed chairman Ben Bernanke is likely to make an announcement later today.

As per consensus expectations, the Fed is likely to leave policy rates unchanged. However, there are hopes of some type of additional easing such as an extension of operation twist.

In commodities, Brent crude edged lower on relief that negotiations to defuse the dispute over Iran's nuclear program led to plans for technical talks in July, while hopes for more monetary stimulus from the Federal Reserve helped lift US crude.

In the precious metal space, gold snapped a seven day rally, slipping to 1620 levels as buyers stayed on the sidelines ahead of the US Federal reserve policy meeting, which could signal new monetary stimulus.