Stocks recovered initial declines for a second day Tuesday to end slightly better amid expectations for a resilient employment report on Friday. The Dow Jones industrial average firmed 0.5 percent while the S&P 500 gained 0.6 percent and the Nasdaq was up 0.8 percent. Long-dated US Treasury yields, the dollar and oil prices all rose.

A somewhat better than expected JOLTS job openings report on Tuesday fed the view that the economy continues to chug along and bolstered expectations for a decent rise in non-farm payrolls for May, due on Friday. Positive earnings news bolstered sentiment too. Technology shares outperformed, especially chipmakers and the AI trade. Other winners included discount chain stores, small cap stocks, banks, and credit cards. Lagging were pharma, food & beverages, restaurant chains, industrial metals, and real estate investment trusts.

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.