US benchmark equity indexes were mostly higher after midday Monday as traders awaited the Federal Reserve's latest monetary policy decision and key corporate earnings due later in the week.

The Nasdaq Composite was up 1.3% at 20,178.8 intraday, while the S&P 500 rose 0.5% to 6,083.1. The Dow Jones Industrial Average fell 0.1% to 43,801.1. Among sectors, communication services and consumer discretionary paced the gainers, while energy saw the steepest decline.

Markets widely expect the central bank's Federal Open Market Committee to deliver a quarter-percentage-point reduction in its 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 report published Monday. "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."

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

The US 10- and two-year yields rose one basis point each to 4.41% and 4.25%, respectively, intraday.

Accenture (ACN), Nike (NKE), Micron Technology (MU), Cintas (CTAS), FedEx (FDX), Lennar (LEN, LEN.B), General Mills (GIS) and Carnival (CCL, CUK) are among the major companies scheduled to report their latest quarterly financial results later this week.

In company news, Broadcom (AVGO) shares were up 10%, the best performer on the S&P 500 and the Nasdaq. Goldman Sachs raised its price target 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 were down 7.6%, 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) saw one of the biggest drops on the S&P 500 intraday Monday, down 4.2%, 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.

West Texas Intermediate crude oil was down 0.8% at $70.72 a barrel intraday.

Gold was down 0.2% to $2,671 per troy ounce, while silver rose 0.1% to $31.07 per ounce.