Equities slipped late Friday to end lower on the day and much lower on the week as early dip-buying faded. The Dow Jones industrial average declined 0.3 percent, the S&P 500 eased 0.2 percent, and the Nasdaq was down 0.1 percent. US Treasury yields ebbed while the dollar and oil prices rose.

Comments from San Francisco Fed President Mary Daly, an FOMC voter in 2024, undercut the rebound effort as she restated that it's unclear whether the Fed has succeeded in vanquishing inflation, and the Fed will do what's necessary to ensure it does.

On the positive side, US Treasuries rose and yields declined in a correction after yields surged through the week. Markets continue to react after Fed officials appeared to signal rates would remain higher for longer than the market had anticipated.

Lower rates on the day Friday helped megacaps outperform to bolster the market, but they faded too into the close. Among sectors, consumer discretionary had a notably bad day, including Mohawk Industries, Tesla, and Norwegian Cruise Line. Financials and real estate lagged too. Holding up best were communications services, information technology, and energy.

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.