Equities rose Monday with big technology shares reversing early losses to lead the market higher. The Dow Jones industrial average rose 0.8 percent, the S&P 500 gained 0.6 percent, and the Nasdaq was up 0.4 percent. US Treasury yields and the dollar declined while oil prices rose.

Declining market interest rates provided support to equities especially after a well-received 20-year bond auction. The declines occurred despite much stronger than expected US housing starts, and caution ahead of Wednesday's Federal Reserve policy announcement.

Nvidia was the day's champion for a second consecutive day as it rebounded from an initial loss after it announced pricing and shipment plans for its artificial intelligence chips. Other big tech stocks bouncing back included Apple and Microsoft.

Best performers included homebuilders after the upbeat housing starts report. A rally in JW Nordstrom's on a prospective LBO lifted department stores. Other winners included energy as oil prices extended the week's rally, plus autos, health care, steel, aerospace & defense, credit cards, and food. Lagging were chemicals, industrial metals, railways, airlines, EVs, China tech, 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.