Another spike in bond yields sent equities lower Tuesday with long-end yields rising to highs last seen in 2007. The Dow Jones industrial average lost 1.3 percent, the S&P 500 fell 1.4 percent, and the Nasdaq dropped 1.9 percent. US Treasury yields and oil prices rose while the dollar declined.

Stocks started lower on the day as yields rose on carry-over from Monday's bearish price action and more oil price gains. Stocks added to their losses when yields rose again at midmorning on news of an unexpected spike in job openings, which suggested surprising tightness in labor markets. US Treasuries and stocks were also hurt by more comments from Federal Reserve officials calling for at least one more rate increase, and for rates to remain high in 2024.

Equities losses were nearly across the board, with only utilities rising. On the downside, worst hit were financials, health care, consumer discretionary, and real estate.

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.