Equities gave up early gains scored after a cooler than expected US consumer price index headline Wednesday. The Dow industrials eased 0.1 percent, the S&P 500 declined 0.4 percent, and the Nasdaq was off 0.9 percent. US Treasury yields declined but ended well up from early lows. The dollar was mixed and oil prices rose.

News that overall CPI rose by 0.1 percent in March, below the expected 0.2 or 0.3 percent figure, gave stocks an early lift, and pushed down Treasury yields. Core inflation rose an-expected 0.4 percent. Equities came off and Treasury yields rebounded after Richmond Fed President Tom Barkin told CNBC the Fed has more work to do to get core inflation down. San Francisco Fed President Mary Daly appeared to agree, saying the Fed probably has more work to do, though uncertainties abound. Subsequent Fed news Wednesday bolstered the view that the Fed is not ready to call an end to its tightening campaign even as its forecasts anticipate recession this year.

Weakness in megacaps undercut the major averages. Best sectors included cyclicals energy, industrials, materials, plus health care and real estate. Lagging were communications services, consumer discretionary, and technology.

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.