Stocks rise ahead of Fed updates, G-20 outcome

US stocks rose slightly last week as traders treaded water ahead of key updates from the Federal Reserve and the Group of 20.

This week, the relative calm is likely to be broken by the Fed's policy statement and any previews of the summit in Japan. Volatility in oil markets, spurred by oil tanker attacks that the US has attributed to Iran, could also spread to the stock market if the sabre rattling gets loud enough.

While it is unlikely that the central bank will cut rates, the Fed could send a clear signal of its intent to do so in July. Investors have positioned their portfolios for this very outcome, buying Treasuries and stocks - such as utilities - that fare well during rate-cutting cycles. Any ambiguity from the Fed would likely trigger a sell-off in both the Treasury and stock markets, as futures markets have priced in not just one but two rate cuts in the last six months of this year.