Stocks edged up Thursday with underlying strength amid a deluge of earnings news. The Dow Jones industrial average and the S&P 500 both firmed 0.1 percent and the Nasdaq was up 0.3 percent. US Treasury yields and oil prices rose while the dollar slipped.

The S&P 500 ended barely short of 5000 for a second straight day with its long-awaited move above that level stalled in part by upward pressure on market interest rates. The market appears to be retaining its upward bias fueled by expectations for a soft landing. Investors have reacted favorably to news of companies announcing layoffs and restructuring, including many big tech names.

Among sectors, best were energy, real estate, communications services, consumer discretionary, and technology. Lagging were financials, materials, consumer staples, and utilities.

Small-cap shares outperformed Thursday in a reversal of Wednesday's price action. Chipmakers remained in demand amid artificial intelligence buzz, with ARM Holdings rallying after upbeat guidance related to AI.

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.