Equities slipped Wednesday in a broad-based selloff as yields rose and worries increased about a wider war in the Middle East. The Dow Jones industrial average declined 1.0 percent, the S&P 500 fell 1.3 percent, while the Nasdaq dropped 1.6 percent. US Treasury yields and oil prices rose while the dollar fell.

Risk assets suffered after news that President Biden's planned meeting with Arab leaders in Amman had been canceled. That disappointed investors who had hoped for diplomatic progress in limiting the conflict. Equities were hurt again by rising bond yields, with the 10-year setting new highs for the current cycle.

Most sectors sold off, paced by industrials, with a hit from United Airlines, off sharply after a profits warning, Materials, real estate, financials, and consumer discretionary were other notable laggards. Energy stocks outperformed as oil prices rose, and consumer staples benefited from the defensive trade.

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.