Equities recouped modest initial weakness to end flat to slightly higher Monday with megacaps including Tesla and Amazon trimming their initial losses to help the broader market recover. The Dow industrials rose 0.3 percent, the S&P 500 firmed 0.1 percent, and the Nasdaq was flat. US Treasury yields rose, the dollar was mixed, and oil prices declined.

Reaction was mixed to Friday's US jobs report as it bolstered the soft-landing but restored expectations for more Federal Reserve rate increases. The market also appears troubled by contracting business evident in last week's purchasing managers reports.

Activity Monday was limited by holidays in London and elsewhere and caution before US inflation figures due on Wednesday.

Cyclicals outperformed growth stocks. Best performers included chain stores, aerospace & defense, energy, chipmakers, homebuilders, machinery, steel, and chemicals. Lagging were autos, exchanges, credit cards, food, paper/packaging, and biotech.

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.