Big technology and other momentum favorites rocketed to lead equities higher Thursday as investors bought Wednesday's dip. The Dow Jones industrial average was flat, the S&P 500 rose 0.7 percent, and the Nasdaq gained 1.7 percent US Treasury yields rose at the long end and declined in the short and intermediate sectors. Oil prices fell and the dollar rose.

Inflation fears inflamed by Wednesday's consumer price report were soothed somewhat by a milder producer price report on Thursday. Investors appear to be pushing out expectations for Federal Reserve rate cuts and officials repeated Thursday they are fine with policy where it is.

Market focus is shifting to micro news including the start of earnings season for the first quarter. Apple's announcement that it will revamp its line of Mac computers helped Apple rally. Big bank stocks had a good day as the market anticipates earnings on Friday from Citigroup, JP Morgan, and Wells Fargo.

Megacaps including Tesla, Alphabet, and Amazon had big days to boost the major averages. Nvidia surged again to lead chipmakers higher. Among Dow industrials, Amgen and Nike outperformed while Travelers lagged.

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.