Equities advanced Monday in a broad rally with megacaps leading the winners. Activity and conviction in either direction were limited by the US holiday.

The Dow Jones industrial average rose 0.5 percent, the S&P 500 gained 0.8 percent and the Nasdaq was up 0.9 percent. Bond yields didn't trade, dollar currency pairs were mostly lower while oil prices dropped.

Best performers included information technology with Apple and Nvdia among the best performers. Other best sectors included real estate and utilities. Only energy stocks fell as oil prices dropped amid disappointment over China's latest fiscal stimulus plans and after reports circulated that Israel was not planning to strike against Iran's oil facilities or nuclear facilities.

Comments from Fed Governor Christopher Waller came across as cautious as he repeated the recent line that rate cuts would be gradual and cautious in the year ahead.

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.