Cooler economic data and declining bond yields lifted equities Thursday. The Dow Jones industrial average rose 0.9 percent, the S&P 500 gained 0.5 percent and the Nasdaq firmed 0.3 percent. Oil prices and the dollar advanced.

News of an unexpected jump in weekly unemployment claims sent bond yields lower and fed the market's hopeful narrative that Federal Reserve officials will cut rates this year. Another well-received Treasury bond auction Thursday added to bullish sentiment to cap a mostly positive series of Treasury refunding sales.

The market showed broadening strength as utilities and real estate were among the day's best performers. Communications services and information technology lagged after outperforming for much of the year.

On the negative side, several quarterly corporate reports were not well-received Thursday, including Airbnb and Chipmaker Arm, which both dropped on disappointing guidance, and Roblox plunged after reporting players less time spent on its video games. On the positive side, Costco and Warner Brothers Discovery both rose despite earnings and revenue misses.

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.