Equities ended slightly better Wednesday in choppy trading as mostly favorable earnings news and lower bond yields helped stocks extend their recent gains. The Dow industrial average firmed 0.3 percent, the S&P 500 rose 0.2 percent, and the Nasdaq was flat. US Treasury yields and the dollar were mostly lower and oil prices declined.

Many investors appear convinced a soft landing is under way and earnings will perk up in response. A move down Wednesday in market interest rates after better than expected UK inflation figures bolstered the argument that inflation is peaking. More cash has been attracted from the sidelines on fear of missing the move up, and lack of a meaningful pullback as the rally has continued.

Nasdaq stocks lagged amid caution ahead of earnings from megacaps including Netflix, Tesla, and others. On the positive side, regional banks led the winners after positive results from US Bancorp, Northern Trust, and others. Goldman Sachs was among the day's best performers despite an earnings miss as the market responded to positive comments from its CEO.

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.