Stocks fell again Friday as the market recoiled from President Trump's latest threats but the major indexes recovered from the day's worst levels. The Dow Jones industrial average lost 0.6 percent, the S&P 500 dipped 0.7 percent, and the Nasdaq was down 1.0 percent. Long-dated US Treasury yields declined, the dollar dropped, and oil prices rose.

Risk-off trading was triggered early in the day after the president warned Apple of 25 percent tariffs on iPhones not made in the US. A second post threatened 50 percent tariffs on goods from the European Union starting on June 1 because Trump said trade talks were going nowhere. That sent the S&P 500 down about 1.7 percent.

Disappointing guidance from retailers added to the negative sentiment. Market losses moderated late in the day after CNBC reported Trump's threat against the EU was intended to boost leverage in trade talks rather than a likely outcome.

Information technology, communications services and consumer discretionary shares were among the day's worst performers as megacaps had a bad day. Utilities held up best as long rates declined.

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.