By Dhirendra Tripathi

Investing.com — Stocks scaled even higher peaks on Tuesday ahead of the Federal Reserve’s highly anticipated policy statement, boosted by solid corporate earnings.

Fed policymakers expect to withdraw stimulus from the pandemic-era period when they finish their two-day meeting Wednesday afternoon.

Elon Musk, the CEO of Tesla Inc (NASDAQ):, sent out an interesting tweet saying that Tesla has not signed a rental agreement with Hertz. That comment led to Tesla shares plummeting 4% following Monday’s new record.

Avis Budget After positive earnings and indications that consumers are returning, Group Inc (NASDAQ) was up almost 100% by mid-afternoon.

The Fed policy meeting is all that’s on everyone’s mind. Investors will be paying attention to the Fed’s policy meeting and what it has to say about inflation. These price rises have been temporary for months, the central bank has maintained.

In the past few weeks stocks have surged due to solid corporate earnings as well as stimulus by the Fed. Each of the major indexes has reached new heights in the last week.

On Tuesday, Covid-19 vaccine maker Pfizer Inc (NYSE 🙂 gained popularity after increasing its sales guidance for the full year and announcing that it could sell vaccines worth $36billion. Fellow vaccine maker Moderna Inc (NASDAQ:)’s earnings report comes out later this week.

Three things could impact the markets in tomorrow’s future:

1. Earnings from CVS

CVS Health Corp (NYSE:)’s third-quarter revenue is seen at $70.52 billion and profit per share at $1.79.

2. Earn money on Etsy

Etsy Inc (NASDAQ:) expects to announce third quarter profit per share at 54c for revenue of $519.05 millions.

3. Fed decision

The U.S. Federal Reserve has set Wednesday as the official date for its much-anticipated decision, to stop buying $120 million monthly bonds. This program was launched in March 2020. It has been widely praised for its remarkable role in saving both the U.S. and the global economies from the devastation of the pandemic. 

In a moment of record inflation, the market will look out for cues from the Fed on its next critical decision. It is expected that the Fed will decide to raise interest rates. They have held them at zero since March’s intervention. The Fed’s decision will come out at 2:00 PM ET (1800 GMT).