Equities edged down Wednesday as global growth worries, debt ceiling uncertainty, and concerns about Federal Reserve rate increases fueled risk-off sentiment. The Dow industrials eased 0.4 percent while the S&P 500 and the Nasdaq both lost 0.6 percent. US Treasury yields and oil prices declined while the dollar was mixed.

Weak Chinese manufacturing purchasers data and news of an unexpected uptick in US job openings weighed on the market early, as did Cleveland Fed President Loretta Mester's comment that she does not see a compelling reason to pause rate hikes in June.

Equities recovered from their lows in the afternoon after comments from Fed Governor Philip Jefferson and Philadelphia Fed President Patrick Harker appearing to support a June pause helped equity indexes recover. Markets were pricing a roughly 70 percent chance of a rate pause in June, based on the CME FedWatch tool.

Weakness in megacaps depressed the major averages. Lagging sectors include financials, energy, materials, and industrials. Holding up best were defensive plays including consumer staples, utilities, real estate, and health care.

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.