Equities fell Thursday and long-end yields rose as takeaways from Federal Reserve Chair Jerome Powell's appearance were seen as bearish. The Dow Jones industrial average declined 0.8 percent, the S&P 500 fell 0.9 percent, while the Nasdaq dropped 1.0percent. Longer US Treasury yields and oil prices rose while the dollar fell.

Risk assets traded higher initially on Powell's prepared remarks at midday at the Economic Club of New York as he voiced caution about the economic outlook, which suggested no rush to tighten further. However, risk assets fell back and the 10-year note yield retested 5 percent during question and answers as Powell said policy is not too tight and that the economy remains resilient, which many regarded as an indication more tightening is needed. Powell acknowledged that rising long yields were doing some of the Fed's tightening work.

Worries that the next phase of the Israel-Gaza conflict is about to unfold weighed on markets Thursday. Markets also focused on mixed earnings news. On the positive side, Netflix had a big beat on subscribers and Taiwan Semiconductor issued favorable guidance. On the other hand, Tesla had a terrible day after issuing disappointing quarterly results. Megacaps generally bolstered the major averages early in the day only to weigh on them later.

Among sectors, health care, consumer discretionary, and real estate lagged. Holding up relatively well were materials, utilities, technology, communications services, and industrials.

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.