US stocks recovered some ground in early trading on Wednesday as investors waited for the Federal Reserve's policy decision, seeking insights into the economy in the face of tariff risks.

The Dow Jones Industrial Average (^DJI) was up about 0.5%, while the S&P 500 (^GSPC) rose about 0.6%. The tech-heavy Nasdaq Composite (^IXIC) led the gains with a rise of nearly 0.9%, after the major gauges failed to muster a comeback on Tuesday.

The Fed is overwhelmingly expected to hold interest rates steady in its policy decision on Wednesday afternoon. But investors are still looking to policymakers to provide a catalyst as stocks attempt to recover from their recent sharp sell-off.

With rate cuts seen as off the table for March, the focus is on the "dot plot" — where Fed officials think rates will move next — and on Chair Jerome Powell's press conference to set expectations for future easing.

"Powell post-FOMC will have to reassure markets growth remains healthy and inflation's trajectory still points to 2% as confidence is wavering amid stagflation worries, or outright recession fears," Evercore ISI's Julian Emanuel said in a note to clients.

Read more: The latest on Trump's tariffs

In high focus is the Fed's view of how Trump's trade, immigration, and other policies will impact the economy — inflation and the labor market in particular. It comes as investors increasingly worry about US growth.

Elsewhere, stocks in Turkey plunged amid a deepening political purge, the latest geopolitical sign of markets on edge to grab Wall Street attention.

In individual names, Nvidia (NVDA) stock rose more than 2%, set to recoup some of Tuesday's tech-rout losses as GTC-linked headlines rolled in. Meanwhile, Tesla (TSLA) shares also rebounded by more than 2% as Cantor Fitzgerald upgraded the stock to a "Buy" rating.