Equities retreated in quiet trading Tuesday on consolidative pressure after the major indexes advanced for five straight weeks. The Dow industrials declined 0.7 percent, the S&P 500 lost 0.4 percent, and the Nasdaq was off 0.1 percent. US Treasury yields, the dollar, and oil prices all declined.

Activity was limited ahead of Federal Reserve Chair Jerome Powell's two appearances on Capitol Hill starting Wednesday. Risk appetite was undercut by disappointment that the People's Bank of China did not act more aggressively on loan prime rates to boost the housing market.

Most sectors retreated, with megacaps outperforming as bond yields declined. Among sectors, energy fared worst as oil prices declined. Materials also suffered amid weakness in metals and chemicals. Regionals led banks lower to weigh on fiinancials. Industrials lagged with transports leading the decline.

On the positive side, homebuilders had a good day after a surprisingly strong housing starts and permits report, with more support from the rally in the US Treasuries market.

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.