Stocks rallied across the board Thursday as investors reveled in Wednesday's big Federal Reserve rate cut and the view that the economy is strong and the Fed will make sure it stays that way. Fear of missing out on the market's advance fueled the day's gains.

The Dow Jones industrial average advanced 1.3 percent, the S&P 500 gained 1.7 percent and the Nasdaq rallied 2.5 percent. Bond yields were mixed with shorter yields lower and long yields higher. The dollar and oil prices rose.

The day's economic reports including relatively stable jobless claims and a decent Philadelphia Fed manufacturing report fueled the view of a benign economic outlook. Megacaps and chipmakers led the way higher, which meant information technology was among the best sectors, along with consumer discretionary and communications services plus cyclicals including energy, industrials and materials. Defensive sectors lagged in the risk-on move, including consumer staples, real estate and utilities.

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.