Equities bounced back Monday as investors bought the dip after last week's losses. Activity remained tentative headed into the highly-anticipated US consumer price report due on Tuesday. The Dow Jones industrial average and the S&P 500 both rose 1.1 percent and the NASDAQ was up 1.5 percent. US Treasury yields rose at the short end and declined at the long end. The dollar was mixed and oil prices declined.

Megacaps outperformed to lead the rebound. Buyers were encouraged after the S&P 500 moved above 4,100, and as US Treasury yields retreated from morning highs. Most stock sectors advanced with communications services, information technology, financials, and consumer staples leading. Energy was the day's big laggard as oil prices gave back some of last week's strength.

Technology stocks were leaders to the upside with a boost from Microsoft amid ongoing buzz from its artificial intelligence innovations. Monday.com, the cloud platform, popped up on positive earnings and outlook. Twilio was another winner after announcing cost cuts. In communications, Meta led social media higher. Other winners included chipmakers, homebuilders, and travel & leisure.

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.