A resurgence in bond yields after unfriendly inflation figures sent stocks back down Thursday. The Dow Jones industrial average lost 0.5 percent while the S&P 500 and the Nasdaq both declined 0.6 percent. US Treasury yields jumped while oil prices and the dollar fell.

Slightly higher than expected consumer price index readings underscored the Federal Reserve's difficulty in taming inflation, and sent yields up again after days of declines fueled by hope the Fed will soon end its rate hike campaign. Concern about fallout from Mideast conflict also weighed on risk appetite and most sectors.

Worst performers included financials, industrials, real estate, materials, consumer discretionary, and consumer staples. Energy outperformed despite lower US crude futures after news of an unexpectedly large rise in US crude oil inventories in the latest week.

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.