Equities edged up Monday as modest buying continued from last week. The Dow Jones industrial average was flat, the S&P 500 rose 0.5 percent, and the Nasdaq was up 0.6 percent. US Treasury yields and oil prices rose while the dollar was mixed.

Markets remain buoyant after the Federal Reserve's apparent pivot toward an easier stance on Wednesday, even as subsequent Fed speakers have been more cautious about the outlook for inflation and rates.

Megacaps outperformed and M&A activity underpinned the major averages. Energy stocks and bond yields got a boost from rising oil prices amid concern over possible supply disruptions in the Middle East. Cyclicals and other less fashionable shares have been especially strong in the recent run relative to big technology shares that have tended to lead this year.

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.