Stocks recovered initial declines to end slightly better Monday amid conflicting trade headlines. The Dow Jones industrial average firmed 0.1 percent while the S&P 500 gained 0.4 percent and the Nasdaq was up 0.7 percent. Long-dated US Treasury yields rose, oil prices surged, while the dollar slipped.

Stocks dropped at the open amid profit-taking after a strong May and as traders reacted to renewed trade war worry after President Trump and China exchanged charges over trade and as Trump announced 50 percent tariffs on aluminum and steel imports. Stocks recovered at midmorning on a report that Trump and Chinese President Xi would speak soon, and a subsequent report that Trump was asking trading partners to make their best trade offer by Wednesday this week as the US looks for ways to accelerate trade talks with many trading partners.

Among sectors, energy was the big winner with a boost from a jump in oil prices after OPEC+ announced smaller than expected output increases. Other strong performers included technology and communications services on dip-buying in selected megacaps.

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.