Risk appetite returned Tuesday with bank stocks rising after Treasury Secretary Janet Yellen's assurance that the banking system was steadying and that authorities would protect depositors if there are any more runs on smaller banks. Bank stocks and the wider market also drew support from a Bloomberg report that the Biden administration was considering guaranteeing all bank deposits without approval from Congress.

The Dow Jones industrial average rose 1.0 percent, the S&P 500 gained 1.3 percent, and the NASDAQ advanced 1.6 percent. US Treasury yields jumped with the short end up the most as the flight into safe assets continued to unwind. The dollar declined and oil prices bounced back on improved risk appetite.

The market rose broadly with growth and value stocks about even. In addition to banks, best sectors included megacaps, airlines, energy, autos, chain stores, travel & tourism, and materials. On the downside, lagging were defensive plays including consumer staples, utilities, pharma & biotech, and real estate investment trusts.

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.