Stocks were mostly better Monday, led by megacaps, with a mixed showing elsewhere as trading was tentative ahead of the Federal Reserve meeting and statement due on Wednesday. The Dow Jones industrial average firmed 0.1 percent, the S&P 500 gained 0.5 percent, and the Nasdaq was up 0.9 percent. US Treasury yields and the dollar fell while oil prices rose.

Stocks have rallied on rate cut expectations but that trade seems to be running out of gas. Some sectors, including homebuilders, lagged Monday as the market has already begin selling ahead of the expected rate cut news. Among megacaps, Alphabet and Tesla were the day's leading winners. Chipmakers had a good day along with networking and communications stocks, plus chain stores, aerospace & defense, industrial metals, and road & rail shares. Lagging were pharma, food & beverage media, and managed care.

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.