Equities retreated broadly Thursday as bond yields ticked up and investors saw the market as overdue for a correction, especially the Dow Jones industrial average, which had risen for 13 straight days. The Dow industrial average declined 0.7 percent while the S&P 500 and the Nasdaq both lost 0.6 percent. US Treasury yields and oil prices rose while the dollar was mostly weaker.

Some blamed the pullback on a report from Nikkei, the Japanese news agency, that the Bank of Japan was likely to tweak its yield curve control policy at Friday's meeting to allow 10-year Japanese bond yields to rise somewhat above the existing 0.5 percent cap.

US bond yields reacted to upside surprises in US gross domestic product and durable goods reports, and a downside surprise in jobless claims. Yields were also pressured after Wednesday's Federal Reserve policy statements undercut confidence in the market's peak Fed narrative.

Among sectors, worst performers included defensives -- real estate, utilities, and precious metals miners. Earnings came in mixed. Disappointing results from Landstar weighed on trucks, and an earnings miss from Hersey depressed food stocks, and Crox tanked after cutting the sales outlook for its Hey Dude brand. On the positive side, Meta rallied after raising its profits guidance. Royal Caribbean's big quarter lifted cruise lines, and Wyndham results lifted hotels.

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.