Equities were mixed but mostly better Tuesday with the S&P 500 and Nasdaq edging up to fresh closing records. The Dow Jones industrial average eased 0.3 percent, the S&P 500 gained 0.3 percent, and the Nasdaq was up 0.9 percent. Bond yields declined while oil prices and the dollar rose.

Activity was tentative as the market is waiting for consumer price figures Wednesday morning and the Federal Reserve policy announcement and press conference on Wednesday afternoon. For the latter, attention seems to be focused on what the Fed's Summary of Economic Projections will say about expectation for rate cuts this year. Markets generally expect the SEP will point to two rate cuts this year, or possibly only one, down from three previously. Investors are also keying on the tenor of Fed Chair Jerome Powell's remarks.

In the day's trading, Apple rallied to lead technology shares as the market digested its plans to incorporate artificial intelligence in its products. Growth stocks got a boost from a retreat in market interest rates on an early risk-off move. Rates continued lower in the afternoon as the bond market reacted favorably to very strong bidding in the U.S. Treasury 10-year note sale.

Among sectors, best were chipmakers, software, energy servicers, health care and solar power stocks. Lagging were airlines, insurance, credit cards, aerospace & defense, homebuilders, autos and industrial metals.

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.