Equities recovered from an early selloff to end higher Friday, led by a rebound in megacaps and in financials, in a mixed sector showing. The major averages ended at five-day highs as investors bought into the view that rates are peaking and a soft landing appears in reach. The Dow Jones industrial average firmed 0.3 percent, the S&P 500 gained 0.3 percent, and the NASDAQ was up 0.7 percent. US Treasury yields and the dollar were mixed while crude oil prices rose.

Banks sold off early Friday, largely on soft guidance, but traders evidently bought the dip. Other strong sectors included building products, cruise lines, hotels, chain stores, and precious metals.

On the downside, Tesla weighed on autos again after news of more news discounting to spur demand. GM and Ford came under pressure too. Airlines suffered after disappointing guidance from Delta. Aerospace & defense was hit by analyst downgrades. Defensive sectors, real estate investment trusts and utilities, lagged.

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.