Equities ended narrowly mixed Monday as a retreat in bond yields helped the major averages edge up from early lows. Activity was cautious ahead of US consumer price figures due Tuesday.

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

Stocks started off lower amid consolidative pressure after Friday's good gains, led by megacaps. Most of the Magnificent 7 megacaps declined Monday while Tesla advanced.

Risk appetite suffered from Friday's news that Moody's Investor's Service lowered its outlook on the U.S. credit rating to"negative" from"stable." The reaction was modest as the market lacked conviction in either direction ahead of CPI. On the positive side, the latest Federal Reserve measure of consumer inflation expectations was mostly lower.


Among sectors, energy, consumer staples, and consumer discretionary outperformed while laggards included technology, real estate, utilities, and financials.

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.