Equities edged down Friday on weakness in bank stocks and surprisingly bad US consumer sentiment data that played on the market's fear of inflation and recession. The Dow industrials were flat, the S&P 500 eased 0.2 percent, and the Nasdaq lost 0.4 percent. The major indexes recovered from their worst levels into the close. US Treasury yields rose while the dollar and oil prices declined.

Megacaps led the market lower as bond yields ticked up on news in the University of Michigan consumer sentiment report that 5-year inflation expectations rose to an unusually high 3.2 percent in May after holding steady at 3 percent for months. The survey's consumer sentiment index fell to 57.7 in May from 63.5 in April, an unexpected and steep decline.

More weakness in regional bank stocks weighed on risk appetite and cyclicals. PacWest, the beleaguered bank, ended down a relatively modest 3.3 percent but was down 29 percent over the last five days. Money center banks suffered too with JP Morgan off 1.4 percent on the day and down 2.5 percent over the last five days.

Other lagging sectors Friday included technology, consumer discretionary, industrials, and materials. On the upside, utilities and consumer staples fared best.

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.