Equities rose Monday with big technology shares leading the way. The Dow Jones industrial average firmed 0.2 percent, the S&P 500 gained 0.6 percent, and the Nasdaq rose by 0.8 percent. US Treasury yields and oil prices rose while the dollar was mixed but mostly higher.

The artificial intelligence trade returned to boost Alphabet and Nvidia to help the Nasdaq outperform. Tesla was another notable winner after news it would raise prices for its Model Y cars in the US.

Rising market interest rates tended to limit the day's enthusiasm amid caution headed into the Federal Reserve's policy announcement on Wednesday. A surprisingly strong US homebuilders report Monday played into concerns that rates will remain high for longer and rate cuts will be limited. Oil prices rose too on Monday after Ukrainian attacks on Russian refineries and key Chinese economic data came in stronger than expected.

Among sectors, best were autos, machinery, software, tobacco, food, payments, entertainment and hotels. Lagging were parcels/logistics, airlines, managed care, apparel, cosmetics and regional banks.

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.