Stocks were mostly better Monday amid broad-based buying though megacaps and chips lagged after outperforming last week. The Dow Jones industrial average rose 0.6 percent, the S&P 500 firmed 0.1 percent and the Nasdaq lost 0.5 percent. Bond yields fell, the dollar rose, and oil prices rallied.

Speculation about aggressive near-term Federal Reserve rate cuts provided underlying support, and markets are increasingly priced for a 50 basis point move this week. Cyclicals led the gains with financials and energy the biggest winners, followed by materials, health care and industrials. Lagging were information technology and consumer discretionary.

Weak economic data out of China added to global growth worries. U.S. data was limited to Empire State manufacturing figures that topped expectations. Investors are watching for more significant US reports Tuesday including retail sales and industrial production and a reading from homebuilders.

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.