Stocks improved Friday to extend their recent uptrend with a boost from lower market interest rates. The Dow Jones industrial average firmed 0.2 percent, the S&P 500 gained 0.8 percent, and the Nasdaq advanced by 1.1 percent. US Treasury yields declined while the dollar and oil prices rose.

Weaker than expected manufacturing, construction spending, and consumer confidence readings Friday pushed down bond yields, which spurred broad-based buying in stocks, paced by megacaps, especially technology shares, including semiconductors. Nvidia was a big winner Friday and the artificial intelligence trade continues to attract buyers. Energy stocks outperformed on an uptick in oil prices as the market sees supplies tightening on output cuts and worries about war in the Middle East.

Other leading sectors included communication services and health care. Lagging were defensive plays including utilities and consumer staples, plus financials amid fallout from the debacle at New York Community Bank, down another 26 percent Friday after the bank disclosed problems in its loan review process.

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.