Stocks tacked on more gains Friday after Thursday's rally with sentiment bolstered by mostly positive company news. The Dow industrials and the S&P 500 both rose 0.8 percent, and the Nasdaq was up 0.7 percent. US Treasury yields and the dollar declined while oil prices rose. The major averages ended higher on the week and were up 3 to 4 percent for April.

Bond yields declined Friday after a mixed batch of economic reports left intact expectations for one more modest rate hike from the Federal Reserve, with market expectations generally calling for rate cuts by year end. Resilient earnings news has supported the narrative that companies are weathering the Fed's tightening campaign.

Companies moving up on earnings Friday included Intel, Colgate-Palmolive, Exxon, and Mohawk Industries. By contrast, Amazon was a big downer after warning late Thursday about slower growth ahead in its cloud business despite very strong first-quarter results. Amazon's news contrasted with much more positive news earlier in the week from Microsoft, Alphabet, and Meta, which put the market in a much better mood.

Among sectors, best were information technology, energy, materials, industrials, and real estate, while lagging were communications services, utilities, and consumer discretionary.

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.