Stocks were narrowly mixed Monday after giving back early gains scored on favorable trade news. The Dow Jones industrial average eased 0.1 percent, the S&P 500 was marginally higher, and the Nasdaq was up 0.3 percent, with the latter two indexes closing at record highs. US Treasury yields and the dollar rose while oil prices jumped.

The market advanced in early going on news that the European Union and the US had reached an agreement on the outline of a trade deal, and as investors are increasingly confident trade wars are not happening.

Still, the major indexes faded on lack of impetus and caution pending a heavy week of earnings and macro news. Big technology leaders Amazon, Apple, Meta, Microsoft are all due to report this week. Tesla was a big winner as the market liked the firm's announcement of its AI chip plans. Nvidia and Broadcom were among the day's best performers too. Energy stocks rallied on rising oil prices.

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.