Equities recovered to end a bit better Wednesday with megacaps leading a rebound after strong US economic data and rising bond yields spurred an initial selloff. The Dow Jones industrial average edged up 0.1 percent, the S&P 500 firmed 0.3 percent, and the NASDAQ gained 0.9 percent. US Treasury yields and the dollar rose while oil prices declined.

The latest batch of surprisingly strong economic reports including surging retail sales and homebuilder sentiment bolstered an emerging narrative that the risk of recession is gone the so-called no-landing scenario -- though interest rates are headed higher than previously priced in. Some analysts went so far as to say the new dynamic means the bear market is over.

The market's risk-on mood was evident in another big up-move in bitcoin and cryptocurrencies. Among stock sectors, best were consumer discretionary, communications services, and industrials. Lagging were information technology, health care, materials, real estate, and energy.

Earnings news lifted several of the day's best performers, including Airbnb, Trade Desk, Upstart Holdings, and Roblox. ChargePoint Holdings rallied after the Biden administration released its requirements for domestic manufacture of EV charging stations.

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.