Equities advanced broadly Monday amid carryover momentum from Friday's rally, with support from declining US Treasury yields. The advance broadened from last week's big-technology-centered advance with small-caps rising.

The Dow Jones industrial average gained 0.4 percent while the S&P 500 rose 0.2 percent and the Nasdaq was up 0.3 percent. The S&P made an all-time closing high at The dollar declined and oil prices rose.

Profit-taking after last week's rally in the Magnificent Seven stocks limited Monday's advance, as did caution ahead of a pickup in earnings news and key economic data this week, including the personal income and spending report due on Friday. Lots of talk Monday focused on expectations the Friday data would show the Federal Reserve's favored inflation measure confirming a dramatic slowing in inflation.

Among sectors Monday, best performers included financials, real estate, industrials, information technology, and materials. Lagging were consumer staples, consumer discretionary and utilities. Weakness in Meta, Alphabet, Amazon, Alphabet and Tesla weighed on the major averages.

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.