Stocks perked up Monday with big technology shares leading as the market hoped a promised temporary US tariff exemption for electronics imports would remain in force. The Dow Jones industrial average and the S&P 500 both rose 0.8 percent and the Nasdaq was up 0.6 percent. Bond yields and the dollar declined while oil prices firmed.

The market reacted positively to news late Friday that the Trump administration would exempt electronics imports from the worst of its reciprocal tariffs, a boon for companies like Apple, Dell and Micron that rely heavily on imports from China. News on Sunday that the exemption was temporary added to the confusion over tariffs but investors seized on the initial announcement and hoped the exemption would in fact prove permanent. Risk appetite also got a lift from a report on consumer inflation expectations from the NY Fed showing consumers see higher inflation at the one-year horizon but stable inflation over 3-year and 5-year timeframes.

Among other winners Monday were automakers after President Trump's comment that he would aim to support the car companies as they move manufacturing into the US. Goldman Sachs was another leader to the upside after its quarterly results topped expectations.

Among sectors, best performers included technology, pharma, financials, automakers, railroads, restaurant chains, and aerospace & defense. Lagging were chipmakers, airlines, apparel, hotels, and managed care.

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.