Stocks bounced back Tuesday to recover Monday's huge losses with big technology shares that saw the worst of it on Monday seeing bargain hunting on Tuesday and buying elsewhere reflecting oversold conditions. The Dow Jones industrial average rose 2.6 percent, the S&P 500 gained 2.5 percent and the Nasdaq was up 2.6 percent. Bond yields were mostly lower with the yield curve flattening as it unwound Monday's steepening, which was a huge boost for stocks. The dollar and oil prices rebounded too.

Risk assets reacted positively to Treasury Secretary Scott Bessent's reported comments that the US and China were headed toward a trade deal, and a report on Politico that the US may be near agreements with India and Japan. Markets also reacted well to earnings news, including Equifax, GE Aerospace and 3M. Among megacaps, Amazon, Apple, Netflix and Tesla were big winners to the upside.

Among sectors, best were communications services, information technology, financials, energy, consumer discretionary and utilities.

In macro news, the Richmond Fed's manufacturing index fell to minus 13 in April from minus 4 in March, well below the minus 5 index expected. That continued a worrisome trend of weaker than expected manufacturing readings for April as the impact of trade tariffs kicks in.

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.