Stocks extended Friday's rebound move on Monday with broad-based gains as many traders continued to see the market as technically oversold after weeks of losses. The Dow Jones industrial average gained 0.9 percent, the S&P 500 rose 0.6 percent, and the Nasdaq was up 0.3 percent. The major indexes ended well down from the day's highs. US bond yields rose at the short end and fell at the long end. Oil prices rose while the dollar fell against major currencies.

Chip stocks were among the day's best performers, paced by Intel which rallied on turnaround hopes linked to its incoming chief executive. Several megacaps rebounded Monday to lift the major indexes, including Apple, Broadcom and Microsoft. Leading sectors included consumer staples, industrials, financials, materials, and real estate.

Stocks initially reacted badly to weaker than expected headline figures for retail sales with overall sales up only 0.2 percent compared with expectations for a 0.7 percent increase. Stock perked up, however, as the market focused on news of a 1.0 percent increase in retail control group sales, well above the 0.4 percent expected increase. Control group sales is seen as a significant figure as it feeds into GDP.

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.