The market generally cheers interest rate cuts and most economists are calling for Fed policymakers, led by chairman Ben Bernanke, to reduce US borrowing costs by a quarter percentage-point on Tuesday.
Investors believe the central bank will trim its short-term Fed funds rate to help underpin economic momentum which is expected to slow in coming months.
In the week to Friday, the Dow Jones Industrial Average surged 1.90 percent to 13,625.58.
The broad market Standard & Poor's 500 advanced 1.59 percent to 1,504.66 and the tech-heavy Nasdaq jumped 1.70 percent to 2,706.16.
Market participants said the past week's stock gains were bolstered by a mortgage rescue plan backed by US President Geor