Equities recovered from initial steep losses to end higher Friday as bond yields retreated from early highs and traders viewed equities and bonds as oversold and ripe for a bounce. The Dow Jones industrial average rose 0.9 percent while the S&P 500 gained 1.2 percent and the Nasdaq advanced 1.6 percent. US Treasury yields, the dollar, and oil prices all rose.

News of a stunning 336,000 rise in nonfarm payrolls in the latest month, more than double expectations, sent bond yield soaring again, on top of their recent gains, and stocks dropped at the open. However, investors evidently considered the selloff overdone, and chose to focus on elements of the report that suggested less underlying strength, including a modest rise in hourly earnings, and unusual factors including outsized increases in leisure and hospitality, and in education, which suggested problems with seasonal adjustments.

Big technology shares and other megacaps saw bargain hunting at the lows to lead the recovery. Gains were nearly across the board, paced by financials, materials, industrials, consumer discretionary, health care, information technology, and communications services. Consumer staples lagged. Automakers' shares rose on signs of progress in labor negotiations.

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.