Declining bond yields after a weaker than expected US employment report lifted equities Friday. The Dow Jones industrial average gained 1.2 percent, the S&P 500 rose 1.3 percent, and the Nasdaq advanced by 2.0 percent. Bond yields and oil prices declined while the dollar gained.

Yields on US Treasury coupons declined by 6 to 8 basis points and rate cut expectations revived after news that US payrolls rose by 175,000 in April, well below the 240,000 figure the market anticipated. Other signs of moderation in the labor market included a lower than expected 0.2 percent rise in average hourly earnings on the month. The market also got a boost from softer than expected US service purchasing managers report.

Big technology shares led the rally, paced by Apple, up 6.0 percent after its results beat expectations and the iPhone maker unveiled an enormous stock buyback plan. Other big winners included biotech after Amgen's earnings beat, road/rail after XPO scored a big beat, chipmakers, travel & entertainment, media, and housing-related retail. Lagging were big pharma, food, energy, health care, and cybersecurity, with Cloudfare off after disappointing guidance.

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.