Stocks perked up Friday with broad-based gains on a relief over cooler than expected US consumer price report that left the door open to rate cuts. The Dow Jones industrial average rose 1.0 percent, the S&P 500 gained 0.8 percent and Nasdaq rose by 1.2 percent. Long end US Treasury yields rose while shorter maturity yields declined, the dollar was mostly lower, and oil prices retreated after Thursday's rally.

Renewed hopes for progress in US-China trade talks bolstered risk appetite too. Positive news from Intel and AMD helped chipmakers outperform and megacaps advanced to lead the market higher with a boost from rate cut confidence after the CPI report. Alphabet was a big winner after announcing a deal with Anthropic.

Among sectors, in addition to technology, communications services, financials and utilities outperformed. Lagging were consumer discretionary, materials, consumer staples, and energy. Energy faltered amid profit-taking after its huge gains on Thursday on Trump administration sanctions on Russian oil.

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.