Stocks were mostly better Thursday as investors shifted into non-technology sectors. Sentiment was bolstered by a positive take on Wednesday's Federal Reserve rate announcement. The Dow Jones industrial average gained 1.3 percent, the S&P 500 rose 0.2 percent and the Nasdaq lost 0.3 percent. US Treasury yields, the dollar and oil prices all declined.

Markets appear bullish after Fed Chair Jerome Powell's comment that a rate increase was no policy-maker's base case and his stress on a weakening job market and suggestion that tariff effects on inflation are likely transitory. A bearish reaction to Oracle's high capex spending weighed on the AI sector, which lagged and depressed the Nasdaq. Value and cyclical shares saw good gains with the Dow outperforming.

Best sectors included banks, staples, retailers, homebuilder, restaurants, travel & leisure, pharma, and materials.

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.