Stocks edged up in cautious trading Thursday with investors hesitant before personal consumption expenditure price figures due Friday. The Dow industrials firmed 0.4 percent, the S&P 500 gained 0.6 percent, and the Nasdaq was up 0.7 percent. US Treasury yields were narrowly mixed, the dollar was mixed, and oil prices rose.

Risk appetite appears generally better this week as the market has shown itself resilient, and the NASDAQ has returned to a bull market. Bulls welcomed the Federal Reserve's steps to expand its balance sheet to rein in banking problems. Strength in big tech shares has attracted buyers, along with perceptions that

Megacaps outperformed to underpin the major averages. Among sectors, best were information technology, consumer discretionary, materials, and real estate. Financials lagged as banks retreated after a better showing this week.

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.