Wall Street Wavers Amid Federal Rate Concerns and Holiday Trading

U.S. stock markets experienced fluctuations as investors reacted to potential changes in Federal Reserve rate cuts. Qualcomm's legal victory lifted its shares, while Eli Lilly advanced on drug approval. The Dow and S&P 500 dipped amid cautious trading during the holiday season, with Nasdaq showing modest gains.

The U.S. stock markets displayed mixed results on Monday as traders navigated through the thin trading characteristic of the holiday season. Investor sentiment was wary due to a slowdown in expected Federal Reserve rate cuts, with the Dow and S&P 500 indices seeing slight declines.

Technology-related shares such as Qualcomm saw a boost, following its courtroom triumph against Arm in a licensing dispute, while Eli Lilly's shares rose after gaining regulatory approval for a weight-loss drug for obstructive sleep apnea.

Despite some stock market gains and a cooler-than-expected inflation report last Friday, overall caution dominated trading floors. Analysts noted the approaching Christmas holiday could lead to diminished trading volumes, marking a potential period of volatility.

(With inputs from agencies.)