Equities extended their recent advance Friday to end the first half with a bang with megacaps leading gains across the board. The Dow industrial average rose 0.8 percent; the S&P 500 advanced 1.2 percent, and the Nasdaq rallied 1.5 percent. US Treasury yields, the dollar, and oil prices all rose.

The market was inspired by Citigroup's positive ratings action on Apple and by moderate US personal income and spending figures that played into hopes for a soft landing. The report featured a slightly better than expected inflation reading with core personal consumption expenditures prices up 4.6 percent on year in May, down from 4.7 percent a month ago, and overall PCE prices up 3.8 percent, down notably from 4.3 percent in April.

All stock sectors advanced on the day, paced by information technology, consumer discretionary, communications services, materials, industrials, and financials. Apple passed the $3 trillion capitalization mark, and Nvidia advanced on another ratings upgrade. On the downside, Nike had a bad day after missing on its earnings.

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.