Equities ended mixed but well above early lows Friday. The market continued to suffer from higher bond yields after mostly hawkish Federal Reserve messaging and a week of surprisingly strong economic news. The Dow Jones industrial average rose 0.4 percent, the S&P 500 lost 0.3 percent, and the NASDAQ lost 0.6 percent. US Treasury yields reversed to end lower and the dollar retreated to end mixed, while oil prices declined.

Sentiment was hit hard as the market priced in higher interest rates after comments Thursday from two non-voting Fed officials, St. Louis Fed President James Bullard and Cleveland Fed President Loretta Mester, who said they saw a case for the Fed to resort to 50 basis point rate moves at the last Fed meeting. On the more positive side, the market liked Richmond Fed President Tom Barkin's comment Friday that he prefers 25 basis point moves. Barkin is also a non-voter this year.

Megacaps had a rough day to lead the market lower though they recovered from the day's lows. Weakest sectors included communications services, technology, and materials. Energy lagged too with oil prices extending their recent declines in response to the hawkish Fed rhetoric and concern about a supply overhang. Best sectors included industrials, health care, consumer staples, and utilities.

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.