Equities gave back much of their early gains but managed to finish better Thursday as most sectors advanced. The Dow Jones industrial average rose 0.7 percent, the S&P 500 gained 0.3 percent, and the Nasdaq was up 0.2 percent. US Treasury yields were lower at the long end and higher elsewhere. Oil prices declined while the dollar was mixed but mostly lower.

Risk appetite remained bolstered by a positive glow after the Federal Reserve's market-friendly policy statements on Wednesday. Positive economic reports provided support including a better than expected Philadelphia Fed manufacturing reading plus a surprisingly strong existing home sales report, which boosted homebuilders and building supply stocks. Other best performers included chipmakers, paced by a rally in Micron Technologies and Broadcom. Machinery, auto suppliers, transports, and banks outperformed.

The Magnificent Seven had a mixed day with Apples showing a big downer for the market. Apple dropped after the Department of Justice sued the iPhone maker saying it has monopolized the phone market and harmed consumers and its rivals. Alphabet and Tesla sagged while Amazon was flat and Microsoft and Meta were higher.

Weak sectors included precious metals, restaurant chains, discount stores, pharma, beverages, insurers, casinos and China tech.

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.