Stocks were mostly better for a fourth day on Friday as markets settled into a hopeful, waiting mode. The Dow Jones industrial average firmed 0.1 percent, the S&P 500 gained 0.7 percent and the Nasdaq was up 1.3 percent. Bond yields declined again while the dollar and oil prices rose.

Markets remained in consolidative mode as risk assets and bonds have reversed much of the previous week's panicky selloff on bearish trade news. Investors this week seized on Trump administration comments suggesting a more conciliatory stance in trade talks with China and other trading partners. Investors have also construed comments from Federal Reserve officials to mean rate cuts were becoming more likely, even if the comments were conditional and carefully balanced.

Megacaps led the winners on Friday, paced by Alphabet after favorable earnings news. Tesla saw huge gains too as investors appear pleased Elon Musk says he is returning to work at the company. Best sectors included communications services and consumer discretionary while lagging were consumer staples, materials, financials, energy and health care.

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.