Stocks improved Tuesday with big technology shares and growth/momentum shares leading again. The Dow Jones industrial average rose 0.4 percent, the S&P 500 gained 0.6 percent and the Nasdaq advanced by 0.8 percent. Bond yields declined, the dollar rose, and oil prices slipped.

Tesla popped up to lead the winners after its second quarter deliveries topped expectations. Big tech including Apple, Amazon, Google and Meta had a big day with help from a retreat in bond yields.

US Treasuries perked up and yields retreated as the market corrected its recent losses. Treasuries also got a lift as investors judged Federal Reserve Chair Jerome Powell's latest comments to be on the dovish side, even as he repeated the Fed needs more proof inflation has been tamed. May's job openings data came in stronger than expected but April was revised down and other signs in the report suggested the labor market continues to moderate.

Among sectors, best were big banks, chipmakers, aerospace & defense, autos, and aluminum. Lagging were casinos, restaurant chains, discount stores, pharma, parcels & logistics, beverages, and cruise lines. In company news, Novo Nordisk and Eli Lilly got whacked after President Biden called on them to cut drug prices. General Motors improved after reporting best quarterly sales since 2020.

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.