Stock prices gained Thursday with broad advances and all three major indexes setting record closing highs as investors continued to react to Wednesday's rate cuts. Dow Jones industrial average firmed 0.3 percent, the S&P 500 gained 0.5 percent, and the Nasdaq was up 0.9 percent. US Treasury yields and the dollar rose while oil prices declined.

Technology shares outperformed, paced by Intel, which rallied on news that Nvidia would make a $5 billion investment in the downtrodden chipmaker. Tech stocks continue to advance amid renewed enthusiasm for the AI trade. Small caps and cyclicals expected to benefit from lower rates were also winners Thursday, including American Express and big banks including JP Morgan.

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.