Stocks gained Thursday amid relief that US PCE price inflation figures matched expectations. The Dow Jones industrial average firmed 0.1 percent, the S&P 500 gained 0.5 percent, and the Nasdaq advanced by 0.9 percent. US Treasury yields rose at the short end and declined at the long end. The dollar rose against some currencies and declined versus others. Oil prices slipped.

The market's recent underlying bullishness reasserted itself after US PCE price data appeared to confirm investors' expectations for ongoing disinflation. Longer-term interest rates declined after the data came in, which helped megacaps lead the market to the upside. Another batch of Federal Reserve comments didn't alter expectations for rate cuts starting in June or July.

Reflecting the preference for growth stocks, best sectors included communications services, consumer discretionary, technology, plus energy, materials and real estate. Lagging were financials, health care and consumer staples.

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.