Equities switched into rally mode Friday, paced by megacaps and chipmakers, with gains across the board. The Dow Jones industrial average rose 1.2 percent, the S&P 500 gained 1.6 percent, and the Nasdaq was up 2.1 percent. US Treasury yields rose, the dollar fell, and oil prices rose. The S&P 500 broke above resistance at 4400.

An upbeat report from Taiwan Semiconductor powered chipmakers to boost the technology sector generally, and the market regained its footing after weakening Thursday in a kneejerk response to hawkish-sounding comments from Federal Reserve Chair Jerome Powell. Investors appear skeptical about the Fed's repeated threats to raise rates again, and generally view rates as having peaked. Positive earnings news continues to underpin stocks.

Among sectors, big tech had a big day, paced by Apple, Amazon, Microsoft, and Nvidia. Other big gainers included consumer discretionary, communications services, materials, and industrials.

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.