Equities extended their advance Wednesday as momentum continued from Tuesday's solid gains and the S&P 500 set another record high. The Dow Jones industrial average rose 1.0 percent, the S&P 500 gained 0.7 percent and the Nasdaq was up 0.6 percent. Bond yields and the dollar rose while oil prices slipped.

Oil prices declined after US oil stocks showed an unexpectedly large rise for the latest week. Bond yields rose amid somewhat hawkish-sounding comments from Federal Reserve officials, including Dallas Fed President Lorie Logan's comment that she favors a gradual approach to cutting rates. That view appeared to be bolstered by the latest Federal Open Market Committee meeting minutes highlighting the Fed staff view that the economy remains robust. At the same time, the minutes showed wide support for the Fed's 50 basis point rate cut.

Bond yields moved higher in the afternoon after the Treasury 10-year note auction drew weak demand following Tuesday's soft 3-year note sale. The two consecutive weak auctions renews focus on the 30-year bond sale Thursday, which follows the week's featured macro news, the consumer price report.

Among sectors, best were banks, parcels & logistics, tobacco, trucking, airlines, homebuilders, cruise lines and software. Big tech stock were generally better on top of Tuesday's rally. Lagging were energy, budget chain stores, aerospace & defense, apparel, industrial metals, and restaurant chains.

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.