Equities advanced nearly across the board Friday, paced by a rally in megacaps and technology shares. The Dow Jones industrial average gained 1.1 percent while the S&P 500 rose 1.2 percent and the Nasdaq rallied 1.7 percent. The S&P and the Nasdaq both set all-time closing highs.

US Treasury yields rose at the short end and declined at the long end as the market continued to pare its expectations for the timing and magnitude of rate cuts this year, largely in response to comments from Federal Reserve officials. Oil prices and the dollar rose.

A positive update from chipmaker TSMC set the tone, which lifted Nvidia, AMD, and Texas Instruments. Index heavyweight Apple rallied for a second day after an analyst upgrade as investors expect a better iPhone upgrade cycle with new artificial intelligence-drive features.

Among sectors, best were technology, communication services, consumer discretionary, financials, and real estate. Consumer staples and utilities lagged.

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.