Another uptick in bond yields pressured equities Thursday as the market prices in a more hawkish Federal Reserve. The Dow Jones industrial average declined 0.7 percent, the S&P 500 slipped 0.9 percent, and the NASDAQ was down 2.0 percent. US Treasury yields rose, the dollar was mixed, and oil prices retreated after three days of gains.

Equities started better in New York after better than expected German consumer price figures but reversed lower in the afternoon and extended the selloff as traders faded the rally. The NASDAQ saw a three percentage point swing to end at the lows after being up more than one percent early.

Underwhelming earnings results and company guidance weighed on the market too. Separately, Google extended its recent losses on concern over its standing in the artificial intelligence space. Good news from Disney and Pepsico was overwhelmed by the risk-off tone as both stocks finished lower.

Disappointing results from the US Treasury 30-year bond auction fueled rising long yields and added to selling pressure in equities. The long bond yield ended the day at 3.74 percent, well above the auction high yield at 3.686 percent.

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.