Stocks advanced again Monday on carry-over from last week's rally amid ongoing improved sentiment. The Dow Jones industrial average gained 0.6 percent while the S&P 500 and the Nasdaq both gained 0.5 percent to close at all-time highs. US Treasury yields, oil prices and and the dollar all declined.

Sentiment remains buoyant after the cease-fire between Iran and Israel and amid hopes for trade agreements to cool the trade war, and rising expectations for Federal Reserve rate cuts. Investors reacted favorably to Canada's decision to cancel its digital services tax in a bid to restart trade talks with the US.

Big bank stocks had a good day after news they had passed the Fed's new stress test, with the S&P financial sector index setting a new record closing high. Several big technology shares were winners, paced by Palantir, Hewlett Packard Enterprise and Juniper Networks.

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.