Equities retraced early modest declines to end mostly unchanged Thursday in quiet holiday trading. A better bid for megacaps helped the major indexes creep back up in the afternoon but the market appeared tentative after Tuesday's good gains. The Dow gained 0.1 percent, the S&P 500 was flat and the Nasdaq was down 0.1 percent. US Treasury yields, the dollar and oil prices all declined.

Investors remained focused on the idea of seasonal gains after Tuesday's Santa Claus rally. Underlying sentiment seems positive amid reports of decent consumer spending, ongoing soft landing hopes, and bullishness about the outlook with Republican control of Congress and the White House.

Equities were bolstered by a well-received US Treasury 7-year note auction after similar results for the 2-year and 5-year notes earlier in the week. On a light news day, weekly jobless claims came in lower than expected, which added to the resilient economy narrative.

Amid sectors, best were information technology and real estate while lagging were energy, materials 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.