Stocks rose Friday to end a strong week as the market remains in risk-on mode as a Mideast ceasefire continues to hold and hopes were mostly positive on the trade front. The Dow Jones industrial average gained 1.0 percent while the S&P 500 and the Nasdaq both gained 0.5 percent. US Treasury yields and the dollar rose while oil prices declined.

News that the US had made progress on rare earths trade with China and positive comments on pending trade deals from Treasury Secretary Scott Bessent gave the market a lift. Still, sentiment was dented in the afternoon when President Trump said he was cutting off trade talks with Canada over the latter's imposition of a digital services tax on US firms.

With Friday's gains, the S&P 500 has recovered all of its losses since President Trump announced a huge package of tariffs on April 2. The stock market recovery began a week later when Trump paused most of the tariffs and the rally has continued.

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.