Stocks were narrowly mixed Thursday with weakness in technology shares weighing on the major averages and with defense stocks outperforming after President Trump urged huge increases in military spending. The Dow Jones industrial average rose 0.6 percent, the S&P 500 was flat, and the Nasdaq lost 0.4 percent. US Treasury yields, the dollar, and oil prices all advanced.

President Trump's call for annual military spending to reach $1.5 trillion, up from about $900 billion now, whipsawed defense stocks higher after many of the same stocks sank Wednesday when Trump said defense contractors should not be paying dividends or buying back shares until they accelerate weapons production.

Nvidia and other shares linked to the AI trade were under pressure as investors evidently want more confirmation that current high valuations are warranted. Investors are keying on the monthly employment report due on Friday. Expectations call for a gain of 55K in nonfarm payrolls.

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.