Equities bounced back Thursday as traders chose to buy Wednesday's dip. The Dow Jones industrial average rose 0.9 percent, the S&P 500 advanced 1.0 percent, and the Nasdaq gained 1.3 percent. US Treasury yields and the dollar rose while oil prices declined.

Many investors see the market trending higher after the Federal Reserve's perceived pivot toward rate cuts next year. More economic data Thursday that appeared to support the soft landing narrative added to the underlying appetite for risk assets. Better than expected results from Micron, the chipmaker, contributed to the day's advance.

The market's appetite for positive inflation news drew support from lower oil prices on reports that Angola would quit OPEC, and news of rising US oil output. That appeared to outweigh concerns about possible supply disruption in the Middle East.

Among sectors, energy and utilities were among the day's worst performers. On the positive side, information technology, consumer discretionary, and information services outperformed.

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.