Equities ended nearly unchanged Monday after a mixed sector showing with trading limited ahead of Wednesday's Federal Reserve policy announcement. The Dow industrials and the Nasdaq both eased 0.1 percent while the S&P 500 was flat. US Treasury yields and the dollar rose while oil prices declined.

Bank stocks dipped at midafternoon in a negative reaction to a review from Federal Deposit Insurance Corporation of its insurance system which raised the prospect of raising its levy on banks to expand the FDIC backstop for deposits.

Markets were generally supported by earnings and relief that federal regulators had resolved the First Republic Bank situation by seizing the bank and selling its assets to JP Morgan. On the downside, rising bond yields weighed on megacaps to hold back the major averages.

Among the day's best performers were health care, with managed care and pharma leading. Other winners included money center banks, paced by JP Morgan, which rose as investors liked the First Republic deal. Regional bank stocks remained under selling pressure. Chipmakers extended Friday's gains; industrials got a boost from a strong showing for machinery and transports.

Amazon had another bad day to depress megacaps. Other weak sectors included energy, materials, homebuilders, electric vehicles, restaurants, telecom, apparel retailers, exchanges, credit cards, and asset managers.

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.