Equities scored solid gains Wednesday with technology shares leading the gains and with support from lower bond yields after soft economic reports. The Dow gained 0.8 percent while the S&P 500 rose 0.6 percent and the Nasdaq was up 1.3 percent. US Treasury yields declined, the dollar was mostly weaker and oil prices slipped.

Stocks got a boost from a weaker than expected US purchasing managers report for the services sector, and yields continued lower after the latest Federal Reserve beige book reported no pickup in the economy. Fed Chair Jerome Powell's initial remarks at mid-afternoon stalled the bond market rally as he underlined the Fed's cautious stance on further rate cuts. But his comments and those of other Fed officials tended to confirm the market view that the economy is not accelerating and that rates are headed lower even as growth continues.

Big tech shares, paced by Nvidia, Apple, and Microsoft, advanced to help the Nasdaq outperform. Salesforce was the day's featured winner after better than expected quarterly results, which led software and other tech shares higher. Other outperforming sectors included airlines, cruise lines, biotech, apparel and auto retailers. Lagging were food, chemicals, steel, truckers, home builders and China tech.

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.