Stocks declined broadly Monday as investors took profits following Friday's gains. The Dow Jones industrial average declined 0.7 percent, the S&P 500 eased 0.3 percent, and the Nasdaq was down 0.2 percent. US Treasury yields and oil prices rose while the dollar declined.

Rising bond yields gave traders another excuse to pare long positions in equities, and bond yields got another prod higher from a stronger than expected service sector report at midmorning. Federal Reserve Chair Jerome Powell's comments to 60 Minutes Sunday spurred more market participants to price out expectations for a Fed rate cut in March on top of Friday's surprisingly positive employment figures.

Megacap stocks and chipmakers showed resilience Monday to limit the day's overall decline. In earnings news, ON Semiconductor rallied after positive earnings and guidance. Nvidia was a big winner after an analyst upgrade. On the downside, a big earnings miss from Air Products depressed materials stocks. Tesla had a bad day after SAP said it wouldn't buy the company's cars.

Among other sectors, health care and information technology fared best while lagging were utilities, real estate, consumer discretionary, and energy.

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.