Stocks edged up Tuesday with the three major indexes setting new closing highs with support from US rate cut expectations. The Dow Jones industrial average gained 0.4 percent, the S&P 500 firmed 0.3 percent, and the Nasdaq was up 0.4 percent. US Treasury yields, the dollar and oil prices all rose.

News of a somewhat larger than expected 911K downward revision in US payrolls for the year ended in March underscored expectations of Federal Reserve rate cuts but the market was already fully anticipating 75 basis points of rate cuts by year end. Equities also drew support from some positive comments coming from investment bank conferences. Crude oil prices and energy stocks were bolstered by the latest rise in Middle East tensions with Israel's strike at Hamas leaders in Qatar.

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.