Equities improved Thursday with strength in technology shares helping the Nasdaq outperform and broad-based buying lifting the S&P 500. The Dow Jones industrial average firmed 0.2 percent, the S&P 500 gained 0.8 percent, and the Nasdaq rose 1.4 percent. The dollar, oil prices, and US Treasury yields all rose.

Markets were largely in a holding pattern ahead of Friday's employment figures. Still equities appeared attractive on a short-term basis after weakness on Wednesday. Risk appetite got a boost from weekly jobless claims holding pretty steady at 220,000, which bolstered the soft-landing story.

An uptick in Alphabet on hopeful artificial intelligence news, along with gains in Apple and Amazon lifted big tech, alongside a big day for chipmakers, especially Advanced Micro Devices.

Among sectors, best were technology, communications services, consumer discretionary, financials, and materials. Lagging were energy, health care, and utilities.

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.