Equities gave up initial gains to end sharply lower Thursday with big technology and megacaps falling back dramatically after an uptick in bond yields. The Dow industrial average lost 1.1 percent, the S&P 500 fell 1.4 percent, and the Nasdaq dropped 1.9 percent. US Treasury yields rose, the dollar slipped, and oil prices edged up.

Strong results for momentum favorite Nvidia after the Wednesday close buoyed tech stocks at the open as the chipmaker blew past expectations for earnings and profits guidance. Equities reversed lower through the day as yields rose headed into Federal Reserve Chair Jerome Powell's speech Friday morning.

Yields got a kick higher from economic data that raised concern about an economy too buoyant for the Fed's taste. Jobless claims came in well below expectations, durable goods orders ex-transportation topped expectations, and the Chicago Fed's national activity index jumped back into positive territory.

Among stock sectors, energy and financials managed gains while lagging were consumer discretionary, information technology, communications services, health care, and industrials.

Takeaways from a batch of retail company earnings have come down on the disappointing side, which has raised concern about consumer resilience headed into the second half. Among companies reporting Thursday, Dollar Tree and Burlington Stores sold off after sales guidance came in light. Apparel retailer Guess, on the other hand, rallied after beating earnings and sales expectations on robust sales overseas.

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.