Stocks recovered broadly on dip-buying Monday after losses last week and so far in April. The Dow Jones industrial average firmed 0.7 percent, the S&P 500 gained 0.9 percent, and the Nasdaq advanced 1.1 percent. US Treasury yields and oil prices fell while the dollar rose.

Many stocks that lagged lately outperformed on Monday, including chipmakers and megacaps. Big technology shares were mostly higher, apart from Tesla, which remains in the doghouse. Risk appetite recovered too amid relief that there has been no further escalation in the conflict between Israel and Iran. Other best performers included banks, travel & leisure, airlines, auto parts, and biotechnology.

On the downside, a weak earnings report from Verizon weighed on telecom and disappointing results from Cardinal Health hit health care. Other lagging sectors included precious metals, oil services, retail chains and entertainment.

Activity Monday was constrained as the market awaits big earnings news this week from companies including Alphabet, Meta, Microsoft and Tesla. Investors are also keen on inflation figures due Friday with the monthly personal income and spending report.

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.