Equities extended their losses on the week Thursday as longer-term debt yields continued to rise and bearishness persisted. The Dow industrial average and the S&P 500 fell both 0.8 percent and the Nasdaq declined 1.2 percent. US Treasury yields declined at the short end and but extended recent gains in the middle- and long end. Oil prices rose and the dollar fell.

Investors appear to be fretting that the Federal Reserve will not accommodate expectations for a near-term peak in interest rates given persistently strong US growth. Markets are awaiting comments from Fed Chair Jerome Powell next week at the annual Jackson Hole gathering though most see no shift in the Fed's ambiguous stance. On the other end of worries, weak indicators from China have renewed concerns about slowing growth. Thursday's reports that Chinese authorities had instructed state-owned banks to buy yuan only deepened the gloom.

Among stock sectors, health care had a bad day, with CVS hit by a report that Blue Shield of California will look for a better deal on drugs elsewhere. Other weak sectors included homebuilders, restaurants, airlines, and other travel & leisure stocks. Holding up better were computer hardware, especially Cisco, after strong results, plus aerospace & defense, credit cards, chemicals, and China tech.

Walmart was a notable weight on the major averages as it sold off despite blowing away quarterly earnings expectations.

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.