05:00 PM EST, 12/16/2024 (MT Newswires) -- The Nasdaq Composite closed at an all-time high Monday while the Dow Jones Industrial Average fell as markets awaited the Federal Reserve's latest monetary policy decision and key corporate earnings due later in the week.

The technology-heavy Nasdaq rose 1.2% to 20,173.9, while the S&P 500 advanced 0.4% to 6,074.1. The Dow fell 0.3% to 43,717.5. Consumer discretionary led the gainers among sectors, while energy saw the steepest decline.

The central bank's Federal Open Market Committee is scheduled to kick off its two-day monetary policy meeting Tuesday.

Markets widely expect policymakers to deliver a quarter-percentage-point reduction in their benchmark lending rate Wednesday, according to CME FedWatch tool. That would mark a second consecutive 25-basis-point decrease following a 50-basis-point reduction in September.

However, there is a "growing chatter" about policymakers possibly skipping a rate cut next month amid factors such as persistent inflation in certain areas and continued economic resilience, Saxo Bank said in a Monday report. "With the new Trump administration likely to focus on trade tariffs early on after taking office on (Jan. 20), there is risk that it could create upside risks to inflation, which could make the Fed more cautious about future cuts."

The US two-year yield rose 1.2 basis points to 4.25% Monday, while the 10-year rate was little changed at 4.40%.

In economic news, US private-sector output rose at the fastest pace since March 2022 in December despite a steepening contraction in manufacturing as the service sector boomed, according to S&P Global's ( SPGI ) flash purchasing managers' index.

New York manufacturing activity declined more than projected in December as orders and shipments tumbled, the New York Fed said.

West Texas Intermediate crude oil fell 1% to $70.57 a barrel Monday.

Report financial results later this week are Accenture ( ACN ) , Nike ( NKE ) , Micron Technology ( MU ) , Cintas ( CTAS ) , FedEx ( FDX ) , Lennar ( LEN ) , General Mills ( GIS ) and Carnival (CCL, CUK).

In company news, Broadcom ( AVGO ) shares jumped 11%, the best performer on the S&P 500 and the Nasdaq. Goldman Sachs raised its price target on the chipmaker's stock to $240 from $190.

Honeywell International ( HON ) was the top gainer on the Dow, up 3.7%, after the industrial conglomerate said it is evaluating a potential separation of its aerospace business as part of its efforts to optimize its portfolio.

Super Micro Computer ( SMCI ) shares dropped 8.3%, the steepest decline on the S&P 500 and the Nasdaq. Late Friday, Nasdaq said the artificial intelligence server maker will be removed from the Nasdaq-100 index, effective prior to Dec. 23 market open.

Ford Motor ( F ) shares declined 3.9% as Jefferies downgraded the automaker to underperform from hold and adjusted its price target to $9 from $12.

Ford's joint venture with South Korean electric vehicle battery manufacturer SK On secured an up to $9.63 billion loan from the US government for the construction of three new battery production plants.

Gold fell 0.2% to $2,670.20 per troy ounce, while silver rose 0.1% to $31.05 per ounce.