After yesterday making headlines by warning that tight policy will extend into next year, the Atlanta Fed's Raphael Bostic clarified today that he's for smaller 25-point hikes marking time for prior hikes to slow the economy.

The dovish comments appeared to help stocks as the Dow gained 1.1 percent and the Nasdaq 0.7 percent. But interest rates continue to climb including the US 10-year yield that jumped 7 basis points on the day to 4.07 percent. The note opened the week at 3.95 percent.

Economic news was light but included a second strong month for unit vehicle sales in February, which are getting a boost from improved supply, and also another week of very low jobless claims, at 190,000 to indicate very strong labor conditions that belie all the job-cut announcements out of the tech sector. Company news included a 5.9 percent loss for Tesla as analysts await details on the car maker's next generation vehicles.

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.