Stocks edged up again Thursday on broad-based buying in quiet trading as the market continued to grind higher and shrug off President Trump's latest tariff threats. The Dow Jones industrial average rose 0.4 percent. The S&P 500 firmed 0.3 percent and the Nasdaq was up 0.1 percent. The S&P 500 and the Nasdaq both set closing highs. US bond yields rose, the dollar was mixed versus major currencies, and oil prices declined.

The gains came even as the market expects Trump to make deals with major trading partners to avoid the most extreme outcomes. That includes the 50 percent tariff on Brazil threatened to take effect Aug. 1, widely seen as a bargaining chip.

Rising bond yields were a negative for stocks after jobless claims dropped more than expected in the latest week. Airlines outperformed with Delta leading after the airline posted better results and improved profits guidance. Tesla was the day's featured winner after positive headlines about its robotaxi business. That helped consumer discretionary shares outperform. Other strong sectors included miners and industrial metals on tariff-related price increases, homebuilders, machinery, travel & leisure, apparel and credit cards. Weak sectors included technology, health care, insurance and telecom.

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.