The Nasdaq 100, which includes 100 of the largest nonfinancial securities listed on the Nasdaq Stock Market, rose 11.24 points to 1,994.32. The broader Nasdaq composite added 13.89 points to 2,595.55.

Earnings reports from Lehman Brothers Holdings Inc. and Best Buy Co. lifted investors' spirits ahead of the Federal Reserve's 2:15 p.m. EDT decision on interest rates. The market expects the central bank will cut the funds rate, which is currently at 5.25 percent.

Shares of chipmaker Nvidia Corp. added $1.36, or 4.2 percent, to $33.54. A Longbow Research analyst raised his fiscal third-quarter revenue estimates on the company, citing favorable wafer supplies.

Apollo Group Inc. shares rose $1.79, or 3.3 percent, to $55.61 after a Stifel Nicolaus & Co. upgraded the for-profit education provider to "Buy" from "Hold."

Shares of natural and organic foods grocery store operator Whole Foods Market Inc. added $1.51, or 3.5 percent, to $44.16.

On the declining side, BEA Systems Inc. shares fell 22 cents to $13.10.

Amgen Inc. shares lost 84 cents to $54.62. A Citigroup analyst said sales of the company's anemia drug Aranesp could fall in the wake of federal reimbursement changes, but that expense cuts would offset the loss.

Shares of Tellabs Inc., which makes telecommunications networking products, shed 12 cents to $9.81.