A dovish signal from a Federal Reserve official helped stocks recover on Friday, with broad-based gains. The Dow Jones industrial average gained 1.1 percent, the S&P 500 rose 1.0 percent and the Nasdaq was up 0.9 percent. US Treasury yields, the dollar and oil prices declined.

New York Fed President John Williams' comment that he still sees room for near-term rate cuts was regarded as a sign that the hoped for December cut remains likely, and markets repriced for it. Williams, who is regarded as an opinion leader for the Fed and has appeared more hawkish lately, so a dovish comment seemed very significant to the market. Other Fed speakers appeared more hesitant about rate cuts.

Interest-sensitive sectors like home builders led the winners. Big technology shares had a good day too, paced by communications services in risk-on trading. Health care was another leader.

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.