Equities dropped nearly across the board on Friday as the market reacted to rising market rates and President Trump's latest tariff threat. The Dow Jones industrial average and the S&P 500 both fell 1.0 percent and the Nasdaq was down 1.4 percent. US bond yields, the dollar and oil prices all rose.

An unexpected decline in the unemployment rate and a generally upbeat employment report sent bond yields higher as investors scaled back further their expectations for Federal Reserve rate cuts this year. Interest rates also rose on news that consumer inflation expectations surged in February. Risk assets also reacted badly to President Trump's comment late in the day that he will announce"reciprocal" tariffs on nations next week, evidently a threat impose tariffs widely as he sees fit.

Big technology shares had a bad day, Tesla and Google among the worst performers, and Amazon off sharply after disappointing guidance. Among sectors, only energy advanced on rising oil prices. Worst sectors included beauty and cosmetics, apparel, pet products, and homebuilders. Holding up best were industrial metals, hospitals, airlines, casinos and hotels.

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.