Strength in chipmakers and megacaps underpinned equities on a mixed day Monday as the Nasdaq outperformed. The Dow eased by 0.3 percent while the S&P 500 firmed 0.2 percent and the Nasdaq was up 1.0 percent. US Treasury yields and the dollar rose and oil prices edged up.

Chipmakers rose to lead technology shares higher after the latest US restrictions on semiconductor exports was not as broad or strict as investors feared. Meanwhile, Tesla, Microsoft, Amazon and Apple advanced to lead megacaps higher.

Among sectors, other winners included communications services and consumer discretionary. Lagging were real estate, materials, consumer staples, health care and utilities.

Bond yields retreated from initial highs but the move had limited effect on stocks. Reaction was limited to Federal Reserve Governor Christopher Waller's comment that he leaned toward a rate cut in December while leaving open the prospect of a pause. A US manufacturing purchasing managers report came in largely as expected, with contraction continuing in November but signs of bottoming headed into 2025.

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.