Equities slipped late Wednesday after Federal Reserve Chair Jerome Powell said policy-makers do not see rate cuts later this year, and as he acknowledged bank trouble was undercutting the economic outlook. The Dow Jones industrial average lost 1.6 percent, the S&P 500 fell 1.7 percent, and the NASDAQ was also down 1.6 percent. US Treasury yields plunged, the dollar was mostly lower, and oil prices rose.

Stocks ticked up on the Federal Reserve's initial, as-expected rate announcement, plus the decision to keep the terminal federal funds rate projection at 5.10%, unchanged from December, in contrast with expectations for a higher rate. Bulls also liked the Fed move to strike its previous language that ongoing increases will be appropriate.

But the equity bid disappeared and the market retraced Tuesday's gains as Powell spoke to reporters. Bank stocks in particular faced renewed selling pressure as Powell's relatively neutral comments appeared to undercut confidence in the outlook. Losses were across the board with worst-hit sectors including real estate, communication services, utilities, and financials.

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.