Stock prices rebounded to end higher Monday with all three major indexes setting record closing highs for a third straight day, paced by technology shares. The Dow Jones industrial average firmed 0.1 percent, the S&P 500 gained 0.4 percent, and the Nasdaq was up 0.7 percent. US Treasury yields rose while the dollar and oil prices declined.

News of an Nvidia partnership with Open AI lifted Nvidia and renewed enthusiasm for the AI trade to lift tech stocks widely. Apple rallied on upbeat views about iPhone sales, and Oracle advanced on management changes the market liked. At the other end of the spectrum, small caps had a good day to help equities extend last week's solid gains.

The upbeat showing came despite rising bond yields amid mostly hawkish sounding comments from Federal Reserve officials. That included St. Louis Fed Alberto Musalem's comment that the Fed may be running out of room for more cuts given the current stance of policy and inflation worries.

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.