Equities ended mixed but mostly better Wednesday after recovering from a short-lived selloff after the Federal Reserve policy announcement. The Dow industrials fell 0.7 percent, the S&P 500 firmed 0.1 percent, and the Nasdaq rose 0.4 percent. US Treasury yields rose at the short and intermediate end and declined at the long end. The dollar rose and oil prices fell.

Equities dipped immediately after the Fed policy announcement as the Fed held rates steady, as expected, but appeared to project two rate increases this year, more than the single rate hike the market generally expected. Equities ticked back up, however, after Fed Chair Jerome Powell said that conditions for moderating inflation appeared to be coming into place, that he would not call June a skip and that no decision had been made on whether to raise rates again in July.

Most sectors were nearly unchanged. Best categories included technology, mining, transport, utilities, and real estate investment trusts. Worst were energy and health care. Cyclicals lagged, including machinery, homebuilders, banks, and retailers.

United Healthcare sold off to depress health care after UNH warned on rising costs.

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.