Monday's panicky selling gave way to dip-buying Tuesday as risk appetite recovered, though major indexes gave back some of the day's gains at the close. The Dow Jones industrial average rose 0.8 percent and the S&P 500 and Nasdaq both gained 1.0 percent. Bond yields and the dollar rose while oil prices edged up.

News that tended to reassure the market included the Atlanta Federal Reserve's GDPNow estimate that U.S. gross domestic product would expand by 2.9 percent in the third quarter, up from 2.5 percent estimated last week, and investment bank comments downplaying the recession risk that spooked the market after weak employment figures.

Hedge funds that were big sellers of technology and megacaps Monday bought back many of the same stocks on Tuesday. The recovery saw Tokyo stocks rally 10 percent to recover most of Monday's 13 percent plunge while U.S. Treasuries yields came off their lows. As New York markets held up at the open, the risk-on move gathered strength and yields and stocks extended their gains.

Big tech ended mostly higher with Meta and Nvidia the notable winners. Other best performers included other chipmakers, computer hardware, hospitals, machinery, transports, big banks, travel & tourism, insurance and credit cards. Lagging were energy, managed care, auto parts, building products and defense stocks.

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.