Equities managed modest gains Monday after holding in slim ranges in directionless trading. Firmness in megacaps provided support but profit-taking after last week's gains kept the market hemmed in.

The Dow Jones industrial average firmed 0.1 percent, the S&P 500 gained 0.2 percent, and the Nasdaq rose 0.3 percent. US Treasury yields and oil prices rose while the dollar declined.

Equity sectors were mixed with consumer discretionary, information technology, health care and utilities outperforming while materials, financials, and industrials lagged. An uptick in bond yields after last week's declines also weighed on equities.

After last week's bounce following news suggesting US rates might not head any higher, analysts were mixed on whether equities could continue higher. Lack of impetus Monday left the market drifting mostly sideways. On the positive side, quarterly earnings news so far has been mostly well received, along with relatively stable expectations for earnings in 2024.

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.