Equities edged up Thursday on carry-over momentum after Wednesday's rally on the Federal Reserve's policy announcement. The Dow Jones industrial average rose 0.4 percent, the S&P 500 firmed 0.3 percent, and the Nasdaq was up 0.2 percent. US Treasury yields declined, the dollar was mostly weaker, and oil prices rallied.

Profit-taking in megacaps after their advance Wednesday weighed on the major averages, while good buying in the broader market, especially small caps, provided support and reflected rising risk appetite headed into year end after the Fed's apparent dovish pivot. Investors appeared to rotate into less-appreciated sectors, which suggested more strength to come. Energy stocks saw buying as oil prices surged.

Sectors were mixed with financials, industrials, real estate, and energy strong while lagging were communications services, technology, health care, and consumer staples.

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.