Stocks ended slightly lower Friday after a weaker than expected job report. The Dow Jones industrial average lost 0.5 percent, the S&P 500 eased 0.3 percent and the Nasdaq was flat. The S&P set a new record closing high. US Treasury yields, the dollar, and oil prices all dropped.

News that US payrolls rose by only 22,000 in August, well below the 75,000 expected, with a net downward revision of 21,000 to the two prior months, depicted a job market effectively stalled over the summer. That fueled recession worries but it also confirmed expectations for a series of Federal Reserve rate cuts starting in September. Rate cut hopes helped the market avoid steeper losses.

Among sectors, worst performers included banks, energy, travel & leisure, and aerospace &defense. Holding up best were homebuilders, chipmakers, building materials,, metals, and small caps.

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.