Stocks edged down Tuesday to give back some of Monday's gains in mostly directionless trading. The Dow industrials eased 0.1 percent, the S&P 500 declined 0.2 percent, and the Nasdaq was down 0.5 percent. US Treasury yields, the dollar and oil prices all rose.

Sectors were mixed in a market lacking clear drivers. Equities drew support from fading banking worries but investors remain uncertain about prospects for a credit crunch and its implications for Federal Reserve policy. Stocks were hurt by rising bond yields, a distinct negative for megacaps, as the bond market appears to be pricing back in a few more Fed rate increases.

Bank stocks retreated after initially leading to the upside. Best performers included industrials, energy, materials, consumer staples, and utilities. Lagging were communications services and information technology. Among FANMAGs, Google and Microsoft slipped, plus chipmakers continued to give back some of their sizeable year-to-date gains.

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.