Equities perked up Monday with bargain hunting in megacaps and chipmakers leading the rebound trade. The Dow Jones industrial average firmed 0.3 percent to lag the other indexes. The S&P 500 rose 1.1 percent and the Nasdaq advanced 1.6 percent. Bond yields were flat to higher while the dollar slipped and oil prices dropped.

The rotation out of the Magnificent Seven and growth stocks that depressed these momentum stocks last week gave way to buying Monday with Nvidia the day's notable winner. Earnings for big technology stocks will be in focus this week. Bond yields held steady with a modest upward bias, which supported growth stocks. Gains were widely based with energy and consumer staples the laggards. Best sectors included information technology, consumer discretionary and communications services, plus health care, industrials, financials, health care and real estate.

Reaction to President Biden's abrupt announcement that he would no longer seek reelection and would endorse Vice President Kamala Harris drew generally muted reaction. Markets are generally still anticipating Republicans will win both houses of Congress and the White House.

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.