Strength in big technology firms and megacaps lifted the major averages Monday but most stocks were lower. Tech shares appeared oversold after recent losses, while energy stocks appeared due for a correction lower.

The Dow industrial average firmed 0.1 percent, the S&P 500 rose 0.6 percent, and the Nasdaq advanced 1.1 percent. US Treasury yields rose, oil prices fell, while the dollar was mixed.

A rally in Nvidia after an analyst upgrade powered technology stocks in otherwise mostly lackluster summer trading. United States Steel surged after rejecting a takeover offer from Cleveland Cliffs. On the downside, Tesla slipped after announcing price cuts in China.

Communications services, consumer discretionary, and health care outperformed. Chipmakers, software, managed care, and waste haulers had a good day. Lagging were consumer staples, real estate, and energy.

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.