Equities edged up Monday amid dip-buying after last week's multi-day selloff but rising bond yields cast a pall over the market. The Dow Jones industrial average firmed 0.1 percent, the S&P 500 rose 0.4 percent, and the Nasdaq was up 0.5 percent. US Treasury yields rose while the dollar and oil prices declined.

Short-term oversold conditions, especially in megacaps, attracted buyers but momentum was lacking. The market was decidedly mixed and declining shares slightly outnumbered winners. Among sectors, energy outperformed along with industrials, materials, health care, and consumer discretionary. On the downside, consumer staples and real estate lagged.

In a quiet macro news day, risk appetite reacted poorly to Chicago Fed President Austan Goolsbee's reiteration that the Fed remains focused on upside inflation risk, and that rates may need to remain high to quench inflation pressure. Other negatives include rising oil prices and concern about threats to growth including the expected US government shutdown and the resumption of student loan payments. US 10-year notes rose another 10 basis points on the day to 4.54 percent, highest since 2007.

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.