Equities rose again Tuesday as the market maintained its upward trend and underlying bullish sentiment. The Dow Jones industrial average gained 0.7 percent, the S&P 500 rose 0.6 percent, and the Nasdaq also rose 0.7 percent. US Treasury yields declined while the dollar and oil prices rose.

Latest Federal Reserve comments generally left intact the view that as inflation continues to trend down, rate cuts next year are inevitable, if only to prevent the Fed's stance from tightening, a comment echoed Tuesday by Richmond Fed President Tom Barkin, who said if inflation continues to fall, discussion of rate cuts would follow.

Lower market interest rates bolstered equities Tuesday, with global bond markets getting a lift after the Bank of Japan left its super-easy policy stance unchanged. Megacap favorites, including the Magnificent Seven, were mostly higher. Other outperforming sectors included banks, pharma, metals, auto parts, cruise lines, casinos, and apparel. Oil prices rose as the market continues to react to supply disruptions linked to conflict in the Middle East.

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.