Equities rebounded Tuesday with large caps and big technology shares leading the way after Monday's selloff. A retreat in oil prices as the energy market corrected some of its recent gains helped risk appetite recover. The Dow Jones industrial average firmed 0.3 percent, the S&P 500 gained 1.0 percent and the Nasdaq was up 1.5 percent. Bond yields declined and the dollar rose.

Renewed confidence in the AI trade lifted Nvidia, the technology leader, along with Broadcom, plus other megacaps Alphabet, Apple, Amazon, Microsoft and Meta. Other winning sectors included cruise lines, airlines, waste, payments, and entertainment. On the downside, energy stocks gave back part of their rally as oil prices retreated.

In the consumer goods sector, Pepsico advanced despite disappointing quarterly results. Pepsico said consumer demand trends appear subdued, and investors are on alert for more signs of consumption slowing as other consumer goods firms report results.

Macro news picks up Wednesday afternoon with the latest Federal Open Market Committee minutes and on Thursday comes monthly consumer price index data. Expectations for CPI call for modest increases of 0.1 percent for the total and 0.2 percent for core, month on month.

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.