Equities were narrowly mixed Monday with firmness in megacaps helping the Nasdaq outperform but rising market interest rates generally weighing on risk appetite. The Dow Jones industrial average lost 0.2 percent, the S&P 500 was unchanged, and the Nasdaq rose 0.7 percent. US Treasury yields rose, while oil prices and the dollar declined.

Uncertainty at the start of October trading kept most stocks confined to ranges following big declines in September. Investors remained focused on bond yields and concerns that interest rates are likely to remain high for longer than the market generally expected. The S&P 500's failure to break above 4,300 spurred selling.

Sectors were mixed with best performers including consumer discretionary, communications services, and information technology. Lagging were financials, materials, health care, energy, and utilities. Energy had a bad day as oil prices gave back some of their recent gains. Utilities lagged the most.

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.