Strength in megacaps and semiconductors boosted equities Monday but higher bond yields kept the market in check. The Dow firmed 0.2 percent, the S&P 500 rose 0.7 percent and the Nasdaq was up 1.0 percent. US Treasury yields and the dollar rose while oil prices were flat to higher.

The market appeared to get an early start on the usual Santa Claus rally even as trading was light headed into the holiday.

A favorable court ruling for Qualcomm lifted the chipmaker and AI chipmakers Broadcom and Nvidia had a good day too to boost chipmakers. Strength in megacaps helped communications services, technology and consumer discretionary outperform while industrials, materials and consumer staples lagged.

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.