Equities bounced back on dip-buying Friday after a big tech-led selloff Thursday though stocks retreated from the day's best levels. The Dow Jones industrial average rose 0.7 percent, the S&P 500 firmed 0.4 percent and the Nasdaq gained 0.8 percent. Bond yields, the dollar and oil prices all rose.

The same megacaps and chipmakers that led the declines on Thursday led the rebound on Friday. Risk sentiment got a lift from renewed expectations for Federal Reserve rate cuts starting next week after a big downside miss in employment figures Friday. Nonfarm payrolls rose a tiny 12,000 in October with notable downward revisions to prior months.

Rising bond yields were a notable drag on the market's upside. Yields initially declined on the soft employment report but they bounced up as the market renewed its focus on an expected Republican sweep in U.S. elections on Tuesday and on a heavy slate of US Treasury supply coming next week with uncertainty over market conditions especially likely to weigh on the long bond sale on Wednesday.

Among sectors, consumer discretionary led the winners with a boost from Amazon after its quarterly results. Apple was a notable decliner but technology and health care shares outperformed. Lagging were real estate, energy, utilities and materials.

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.