Equities lost ground Wednesday as the market judged Federal Reserve Chair Jerome Powell's post-rate hike comments to be less friendly than expected. The Dow industrials slipped 0.8 percent, the S&P 500 fell 0.7 percent, and the Nasdaq was off 0.5 percent. US Treasury yields and oil prices declined, and the dollar was mostly weaker.

Equities rose immediately after the as-expected 25 basis point rate increase as many interpreted the Fed's policy statement to mean the Fed was unlikely to raise rates further. In particular, bulls were heartened that the Fed scrapped its previous guidance that further rate increases were likely. But stocks traded off as Powell told reporters no decision had been made to keep rates on hold and that the Fed could raise rates again if needed. Powell said the Fed has a long way to go to get inflation down to target.

Stocks sold off nearly across the board. Global growth concerns depressed energy and other cyclicals. Worst performers included financials, materials, energy, consumer staples, and information technology. Health care drew support from a rally in Eli Lilly after positive clinical trial news on its Alzheimers treatment.

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.