Stocks were ending with moderate gains Friday in a thin market after a week of good gains propelled by rate cut hopes. The Dow Jones industrial average and the Nasdaq were both up 0.5 percent ad the S&P 500 was up 0.4 percent headed into the early close. US Treasury yields rose in illiquid holiday trading conditions, the dollar eased, and oil prices rose.

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.