Equities firmed Tuesday with support from declining bond yields. The Dow Jones industrial average and the S&P 500 both gained 0.5 percent and the Nasdaq firmed 0.7 percent. US Treasury yields, oil prices, and the dollar all declined.

Investors viewed the long-awaited consumer price report as leaving expectations for a Federal Reserve pivot to rate cuts intact, which pushed yields lower and lifted megacaps to bolster the major averages. Big technology stocks mostly rebounded after weakening Monday.

Sectors were mixed with best performers including materials, information technology, industrials and financials. Lagging were utilities and energy, with the latter hurt by another leg down in oil prices fueled by fear of oversupply.

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.