Equities ground higher Monday as the market extended last week's gains on hopes for a soft landing and a reversal lower in interest rates. The Dow industrial average firmed 0.2 percent, the S&P 500 rose 0.4 percent, and the Nasdaq was up 0.9 percent. US Treasury yields and oil declined while the dollar rose.

Megacap stocks helped the major indexes rise and the Nasdaq outperform. Financials were strong with investors expecting good earnings news from Morgan Stanley, Bank of America, and others due early Tuesday.

Among sectors, in addition to financials, technology, and industrials fared best. Lagging were health care, utilities, consumer staples, and communications services.

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.