Risk-off sentiment hurt equities Tuesday after Moody's downgraded several small- and medium-sized US banks and after disappointing Chinese trade figures pointed to slower global growth. With modest widespread losses, the market appeared to see profit-taking after its uptick Monday.

The Dow industrial average declined 0.5 percent, the S&P 500 lost 0.4 percent, and the Nasdaq fell 0.8 percent. US Treasury yields fell while the dollar and oil prices rose.

Global markets took on a risk-off tone as the Chinese trade figures showed a bigger than expected drop in exports, and as the market reacted to renewed worries about China's property sector. China's biggest remaining property developer, Country Garden, missed interest payments on two US dollar-denominated bonds, a sign of more trouble in China's huge property market.

Weakest US stocks sectors Tuesday included information technology, consumer discretionary, materials, and financials. Big tech had a bad day to weigh on the averages but Apple offset the weakness somewhat as it rebounded following five days of losses.

On the upside, energy outperformed with rising oil prices, and health care advanced with a lift from strength in Amgen, Novo Nordisk, and Eli Lilly.

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.