Equities extended their recent advance Thursday with a boost from declining interest rates. The Dow Jones industrial average rose 0.6 percent, the S&P 500 gained 0.5 percent, and the Nasdaq was up 0.2 percent. US Treasury yields declined, the dollar rose, and oil prices rallied.

Surprisingly strong US growth and consumption figures and another lower than expected inflation reading bolstered the soft landing/no landing narrative, which has underpinned stocks lately.

Sectors leading Thursday included technology hardware, airlines, machinery, homebuilders, media, chemicals, department stores, and health & personal care. Lagging were electric vehicles, aerospace & defense, managed care, regional banks, and exchanges.

Megacaps generally provided support, with the notable exception of Tesla, which sank on disappointing earnings and guidance. Some big names reported upbeat earnings to buoy the market, including IBM, W.R. Berkley, Resmed, and Packaging Corp. Boeing, on the other hand added to its recent losses on its ongoing production problems and an analyst downgrade.

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.