Equities ended narrowly mixed Thursday but underlying sentiment darkened and most sectors retreated in response to rising bond yields. The Dow Jones industrial average gained 0.4 percent, the S&P 500 was flat, and the Nasdaq firmed 0.1 percent. The dollar index rose with rising bond yields and oil prices edged up.

Equity sentiment was dented as hopes for Federal Reserve rate cuts receded further after another round of surprisingly upbeat US economic reports, including much better than expected retail sales, jobless claims and Philadelphia Fed manufacturing.

Among sectors, chipmakers advanced after positive results from Taiwan Semiconductor Best sectors were energy, information technology and financials. Lagging were interest rate sensitive sectors including utilities and real estate.

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.