Federal Reserve Needs to Remain Dovish to Keep S&P 500 Above 2,000

If the broad S&P 500 is going to stay above the critical 2,000 level, the Federal Reserve needs to throw markets a bone this week. ‘The announcements out of central banks and the stimulus packages are going to have to be maintained in order to keep equities in this relatively exuberant mind frame,’ said Alastair McCaig, a market analyst with IG, based in London. U.S. stocks have risen for four straight weeks, pushing the broad S&P 500 above the 2,000 level. The index is down some 1 percent so far this year and closed at 2,022.19 on Friday. The markets are pricing in a zero percent chance of a rate hike when the Fed wraps up its two-day March policy meeting on Wednesday. TheStreet’s Scott Gamm reports from Wall Street.