Equities ended mostly weaker though megacaps outperformed to prevent bigger losses and boost the Nasdaq. The Dow Jones industrial average lost 1.1 percent, the S&P 500 lost 0.5 percent, and the Nasdaq rose 0.4 percent. US Treasury yields declined while the dollar and oil prices rose.

Risk-off sentiment continued to dominate ahead of weekend event risk. US Treasuries were in demand on news of US airstrikes against Iranian proxies and new Israeli attacks in Gaza. Another big batch of earnings attracted attention, with better news from Amazon helping megacaps bounce back after weakness this week. Better than expected quarterly earnings from Intel helped chipmakers outperform.

On the downside, disappointing results from Chevron and Exxon Mobil weighed on energy stocks despite rising oil prices on increasing concern about Mideast supply disruptions. Financials suffered after JP Morgan tanked on news CEO Jamie Dimon announced he will sell a million shares next year, news that raised worries Dimon is planning to retire.

Megacap strength helped communications services, consumer discretionary, and technology shares outperform. On the downside, lagging were health care, utilities, consumer staples, and real estate, in addition to financials 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.