Businesses continue to report contraction, housing prices are cooling, and consumer confidence is sinking. All this at the same time that talk builds the Federal Reserve will increase the tempo of its rate hikes. The Dow fell 0.7 percent on the session with the Nasdaq up 0.1 percent.

Both the Chicago PMI and the Richmond Fed's manufacturing index are indicating substantial and greater-than-expected contraction in month-over-month business activity. Housing prices, whether Case-Shiller or FHFA, are also contracting on a monthly basis as is consumer confidence which, like the business surveys, fell steeply and unexpectedly including the consumers' outlook for the months ahead.

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.