Stocks edged up Monday though ending down from the day's best levels in tentative trading ahead of news this week. The Dow Jones industrial average eased 0.1 percent, the S&P 500 firmed 0.1 percent, and the Nasdaq rose by 0.3 percent, with the S&P and Nasdaq setting new closing highs. Bond yields rose while the dollar and oil prices declined.

Markets were mostly waiting for Federal Reserve Chair Jerome Powell's appearance on Capitol Hill Tuesday, the consumer price index report due Thursday, the producer price index due Friday, and the start of earnings season later this week. A heavy slate of U.S. Treasury auctions exerted upward pressure on yields Monday after Friday's rally in Treasuries. Investors expect Powell to repeat the Fed's cautious stance on inflation even as weak economic reports last week bolstered expectations for rate cuts starting in September.

Another rally in Nvidia shares after an analyst upgrade helped underpin the market. Stocks also were encouraged by the Fed's inflation expectations report showing consumers see lower inflation ahead.

Among sectors, best were chipmakers, banks, homebuilders, discount retail, aerospace & defense, cruise lines, biotech, and insurance. Lagging were big oil, transports, industrial metals, media, tobacco and beverages.

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.