Equities extended their gains Thursday in a broad advance after rallying on Wednesday's Federal Reserve's policy announcement as investors seized on the notion that no more rate hikes are likely. Earnings news was also generally positive.

The Dow Jones industrial average gained 1.7 percent, the S&P 500 rose 1.9 percent, and the Nasdaq advanced 1.8 percent. US Treasury yields declined while the dollar and oil prices rose. Stocks got a boost after the S&P 500 broke above resistance above 4200.

Longer-term market interest rates extended their recent decline, with the benchmark 10-year note yield down another seven basis points Thursday to 4.67 percent after reaching 5 percent in late October. Falling interest rates helped growth stocks advance with heavy-weight megacaps surging. The market also got a kick out of productivity figures showing better than expected productivity gains and lower unit labor costs in the third quarter.

Among sectors, real estate, consumer discretionary, utilities, financials, and industrials outperformed. Earnings were in focus with Starbucks up big after an earnings beat and Roku rallied on a revenues beat. On the downside, Moderna, the vaccine maker, sank after reporting an earnings miss.

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.