Wall Street's Mixed Start Amid Rate Cut Hesitation

Wall Street is poised for a subdued start as Congress passed a temporary funding bill, averting a shutdown. The Federal Reserve's reduced rate cut projections for 2025 and a surprisingly tame inflation report have been pivotal for market reactions. Qualcomm and Eli Lilly stocks rose after positive developments.

Wall Street's main indexes are bracing for an unremarkable opening on Monday following Congress's approval of a stopgap funding measure averting a potential government shutdown. Investors are also navigating the Federal Reserve's revised schedule of rate cuts for 2025, indicating only two 25-basis-point reductions, a stark contrast to previous forecasts.

Economic indicators, including a consumer confidence measure due early in the day, are likely to shape trading sentiments. While the Dow, S&P 500, and Nasdaq are inching down in premarket trading, the markets are entering the historically favorable 'Santa Claus Rally' period, potentially cushioning any negative impacts.

Corporate developments include Qualcomm's stock uptick following a legal victory concerning licensing with Arm Holdings. Meanwhile, Eli Lilly shares saw a 1.5% boost after its weight-loss medication received FDA approval for sleep apnea treatment, impacting rival companies adversely.

(With inputs from agencies.)