Equities bounced back Friday after a three-day selloff with technology and megacaps leading the recovery. The Dow Jones industrial average gained 1.0 percent, the S&P 500 rose 1.9 percent and the NASDAQ rallied 2.7 percent. US Treasury yields and oil prices rose while the dollar weakened vs. most currencies but was stronger vs. the yen.

Hopes for a soft landing have suffered this week after disappointing economic reports and earnings news, plus hawkish-sounding Federal Reserve comments. But risk appetite returned Friday, as evident in a nearly 5 percent bounce in bitcoin.

Among sectors, outperformers included travel & leisure, internets, streaming entertainment, software, chipmakers, apparel, and regional banks, while lagging were health care, pharma, real estate, and aerospace & defense.

Company news helped, including Netflix, up sharply on better than expected subscriber news, and Google, up on news of huge layoffs to cut costs. Other leaders included Wayfair, up on cost cut plans. Financials advancing after better than expected results included Ally Financial, State Street, and Regions Financial.

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.