Hopes for a softening in President Trump's tariff stance lifted stocks on Monday. The Dow Jones industrial average gained 1.4 percent, the S&P 500 rose by 1.8 percent, and the Nasdaq was up 2.3 percent. US bond yields and oil prices rose while the dollar was mixed versus major currencies.

Weekend reports saying the April 2 promised blitz of reciprocal tariffs on many countries from Trump would be far more muted than feared lifted stocks. Plus, Trump said on Monday he would announce the tariffs in the near future rather than in a batch on April 2 as threatened, and he said, I may give a lot of countries breaks. On other hand, Trump new threat to impose a 25 percent tariff on buyers of Venezuelan oil lifted oil prices.

Stocks gained on bargain-hunting after a weak showing last week and saw more buying after breaking above a key resistance level in the S&P 500. Among sectors, best were consumer discretionary, communications services, industrials, financials and energy.

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.