Powerful dip-buying helped stocks rebound Monday from last week's losses with megacaps leading the way. The Dow Jones industrial average gained 1.3 percent, the S&P 500 rose 1.5 percent, and the Nasdaq rallied 2.0 percent. US Treasury yields declined on rate cut hopes, the dollar rose, while oil prices slipped.

Friday's selloff on much weak jobs data gave way to bargain-hunting with a boost from heightened expectations for Federal Reserve rate cuts this year. The market also drew support from some upbeat earnings news including Wayfair and Energizer, up big after earnings beats.

Among sectors, best were information technology, communications services, materials and utilities while energy lagged as oil dropped after bearish global supply news from OPEC+.

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.