Equities recovered a bit Monday as some investors viewed recent declines as a buying opportunity. The Dow Jones industrial average rose 0.7 percent while the S&P 500 and the Nasdaq both firmed 0.3 percent. Bond yields rose, the dollar index edged up and oil prices plunged.

Several megacaps reporting results later this week, including Apple, Alphabet, Meta and Amazon, advanced to bolster the major indexes. News that Israel limited its retaliation against Iraq to military targets sent oil prices down and bolstered risk appetite. Poorly received 2-year and 5-year note auctions saw yields pushing higher on a heavy week of Treasury issuance.

Among sectors, best were materials, real estate, communications services, financials, consumer discretionary, and utilities. Lagging were information technology as Microsoft and Nvidia had down days, plus energy as oil prices tanked.

Markets will get a batch of top-tier economic indicators through the week starting with job openings data on Tuesday, Q3 GDP on Wednesday, personal income & spending on Thursday and employment on Friday. The Treasury refunding announcement on Wednesday will be in focus given the market's renewed attention on government borrowing.

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.