Equities were mixed to weaker Monday with early gains fading after somewhat hawkish Federal Reserve comments. The Dow Jones industrial average eased 0.3 percent, the S&P 500 declined 0.1 percent, and the NASDAQ firmed 0.6 percent. US Treasury yields and the dollar declined while crude oil prices rose.

China's reopening and hopes for recovering demand gave the market early support with energy stocks leading on a recovery in oil prices. Carryover from Friday's rally helped too. However, Atlanta Fed President Raphael Bostic's comment that rates would need to stay high for long time and similar comments from San Francisco Fed President Mary Daly weighed on risk appetite as it reminded investors that last week's optimism about the Fed's rate stance might be overblown. The Fed's latest consumer inflation expectations provided a mixed picture, with near-term inflation expectations falling again while medium-term expectations were flat and long-term expectations rose.

Among sectors, FANMAGs outperformed to help the NASDAQ outperform. Tesla's rebound helped electric vehicles have a good day. Chipmakers, software, airlines, chemicals, oil servicers, and restaurants outperformed too. On the negative side, pharma, aerospace & defense, banks, and insurance companies lagged.

Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.

Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.