US stocks rose Tuesday after a report on US housing starts suggested more momentum in the recovering housing sector.
About 40 minutes into trade, the Dow Jones Industrial Average rose 47.82 points (0.33 percent) to 14,499.88.
The broad-based S&P 500 increased 3.44 (0.22 percent) to 1,555.54, while the tech-rich Nasdaq Composite Index jumped 10.05 (0.31 percent) to 3,247.64.
Financial markets remained leery about Cyprus after a proposed bailout included taxes on bank deposits.
But US investors were heartened by housing data that showed housing starts edged higher in February after a plunge in January, with single-family housing starts at their highest level since June 2008.
Wall Street awaited the outcome of the Federal Reserve's two-day monetary policy meeting Wednesday, with the Fed widely expected to leave its easy-money policies unchanged.
"The improvement in the housing market is something the Fed's policy directive tomorrow is likely to call attention to as an encouraging indication that the economy is recovering," said Briefing.com analyst Patrick O'Hare.
"At the same time, developments like what we are seeing with Cyprus will be the basis for the Fed's thinking that risks remain tilted to the downside."
Boeing picked up 0.4 percent after Irish airline Ryanair said it would buy 175 Boeing 737-800 airplanes in a deal worth $15.6 billion at list prices.
Citigroup gained 1.3 percent after announcing a $730 million settlement with bondholders related to the 2008 financial crisis.
AmericasourceBergen jumped 6.7 percent after announcing a 10-year pharmaceutical distribution agreement with Walgreens and Alliance Boots. Walgreen gained 6.6 percent.
Yoga attire manufacturer Lululemon Athletica sank 4.3 percent after it disclosed that it expects a shortage because some of its shipments do not meet company specifications.
Footwear retailer DSW slipped 6.5 percent after it said its sales trend in the first part of 2013 had "softened." Market conditions mean it is "difficult" to project full-year profits with confidence, the company added.
Bond prices rose. The yield on the 10-year Treasury fell to 1.93 percent from 1.96 percent late Monday, while the 30-year yield fell to 3.17 from 3.18 late Friday. Bond prices and yields move inversely.