Stocks held slim ranges to end flat in quiet trading Monday as investors awaited the Federal Reserve policy decision and accompanying statements due on Wednesday. The Dow Jones industrial average and the Nasdaq were unchanged while the S&P 500 firmed 0.1 percent. US Treasury yields were mixed with short and intermediate yields up and long yields down. Oil prices rose while the dollar was mostly higher.

Megacaps and technology shares held up relatively well after losses last week. Energy outperformed again with rising oil prices. Other winners included homebuilders, industrials, aerospace & defense, and insurance. Lagging were electric vehicles, travel & leisure, regional banks, and Chinese tech.

In macro news, markets digested news that the United Auto Workers had rejected a strike settlement offer from Stellantis as talks continued. Reaction appeared limited to a surprising downside miss in the National Association of Homebuilders housing market index in the latest month as home sales continued to suffer from rising interest rates.

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.