Economic data were once again weak on Wednesday pulling Econoday's Consensus Divergence Index well into negative territory, to minus 32 to indicate that US data are signficantly missing forecasts. ISM's manufacturing index remained in contraction for a fourth straight month in February yet the report's prices paid index jumped from a level consistent with substantial deflation to one of modest inflation.

Citing the risk of inflation, Atlanta Fed's Raphael Bostic warned that monetary policy will have to remain tight"well into" next year. Minneapolis Fed's Neel Kashkari said he is"open minded" whether the Fed should hike rates by either 25 or 50 basis points at this month's meeting.

The Dow edged 0.1 percent lower on the session while the Nasdaq fell 0.7 percent. The yield on the 10-year US Treasury note rose 2 basis points to 4.00 percent. Caterpillar rose 3.8 percent on news that the heavy equipment maker has reachd a tentative agreement with union workers at four of its plants.

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.