A weak batch of economic indicators in Europe pushed down bond yields to boost equities Wednesday. The Dow industrial average rose 0.5 percent, the S&P 500 gained 1.1 percent, and the Nasdaq advanced 1.6 percent. US Treasury yields and oil prices declined while the dollar rallied.

European purchasing managers reports came in much weaker than expected and US PMI figures slipped too with services joining the ongoing contraction in manufacturing. Investors judged the weakness to mean the European Central Bank and the Federal Reserve would now hold off on any more rate increases in the current cycle.

Megacaps rallied to boost the major stock indexes even as gains were nearly across the board, with only energy stocks weakening on a pullback in oil prices. Big technology stocks had a great day while software and semiconductors lifted tech generally. Nvidia advanced again on hopes for good news in its earnings after the close, and the revival of the mania for artificial intelligence that has lifted tech this year. Other top performers included apparel retailers, miners, precious metals, homebuilders, media, and regional banks.

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.