Equities advanced Tuesday as risk appetite remained strong and momentum stocks led the way higher. The Dow Jones industrial average firmed 0.6 percent, the S&P 500 gained 1.1 percent, and the Nasdaq was up 1.5 percent. US Treasury yields rose while oil prices and the dollar declined.

Consumer price figures came in a bit hotter than expected but not hot enough to alter expectations for Federal Reserve rate cuts starting in June.

Megacaps including the Magnificent Seven had another magnificent day, paced by Nvidia. Other chipmakers advanced, and software had a big day with Oracle a huge winner after its earnings report showed surging demand for cloud/AI related services.

Stocks saw broad-based gains. Best performers included chain stores, pharma, parcels & logistics, hospitals, and auto parts. Lagging were airlines, aerospace, banks, metals, chemicals, food, and solar stocks.

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.