Equities edged up in quiet trading Monday as the path of least resistance continues to be upward. Trading lacked much impetus as investors awaited expected rate hikes from the Federal Reserve and European Central Bank, and big earnings news from Alphabet, Meta, and Microsoft this week.

The Dow industrial average rose 0.5 percent, the S&P 500 gained 0.4 percent, and the Nasdaq firmed 0.2 percent. US Treasury yields, the dollar, and oil prices all rose.

Among sectors, best were communications services, consumer staples, financials, and real estate, while lagging were utilities and health care.

The Dow industrials continued to outperform, setting an eleventh consecutive day of gains. Best performers in the Dow Monday included Goldman Sachs, Home Depot, and Chevron, with the latter lifted by rising oil prices and better than expected earnings. Mattel was a big winner on positive spillover from the strong showing for the Barbie movie in theaters.

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.