Thursday with better than expected results from Meta and from some old-line industrials fueling the advance. The Dow industrials rose 1.6 percent, the S&P 500 gained 2.0 percent, and the Nasdaq was up 2.4 percent. US Treasury yields, oil prices, and the dollar all rose.

Earnings drove equities higher despite rising bond yields after a hotter-than-expected inflation reading in first-quarter growth data, including core PCE prices up 4.9 percent. The report solidified expectations for a 25 basis point rate move from the Federal Reserve next week even as gross domestic product growth underperformed expectations.

Surprisingly good news from Meta helped lift big technology shares and other megacaps to help the Nasdaq outperform, while better-than-expected earnings and guidance from industrials including Honeywell and Caterpillar boosted the Dow.

Other earnings-related winners included semiconductor equipment makers like KLA, and media stocks where Comcast advanced on news of a better than expected quarter. Other winners included insurance, freight, media, fintech, and toys and games.

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.