Equities edged down Monday but trading lacked conviction ahead of US elections Tuesday. Lower bond yields provided some support. The Dow Jones industrial average lost 0.6 percent, the S&P 500 eased 0.3 percent, and the Nasdaq was down 0.3 percent. Bond yields and the dollar declined but oil prices rallied.

Weekend polls suggesting Kamala Harris was gaining ground in the presidential election spurred some unwinding of the bearish Trump trade that has pushed up yields. Still, polls suggest a race too close to call even as markets continue to anticipate a Trump win. Bond yields came off their lows as the day progressed. Among stocks, weakness in megacaps depressed the major indexes.

Among sectors, energy led the winners as oil prices bounced up on news that OPEC would postpone a planned output increase, and Iran's threats to retaliate against Israel after Israel's latest strike against Iran. Other sectors outperforming included materials, real estate and consumer staples. Lagging were communications services, consumer discretionary, financials, and utilities.

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.