Equities perked up Tuesday with support from rising megacaps and positive economic data. The Dow Jones industrial average rose 1.0 percent, the S&P 500 gained 1.2 percent, and the Nasdaq was up 1.4 percent. Bond yields were mostly higher, the dollar declined, and oil prices rose.

Stocks were already higher at the open and got an additional lift from an unexpectedly strong ISM services report, which suggested ongoing economic resilience. Investors appear to be looking forward to getting the election behind them as an end to uncertainty.

Gains were nearly across the board but best performers included megacaps and chipmakers paced by Nvidia. Among sectors, technology led the winners along with communications services, consumer discretionary, industrials and financials.

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.