Rising bond yields and company news tanked equities Wednesday as investors sold into Tuesday's rally. The Dow Jones industrial average eased 0.3 percent, the S&P 500 fell 1.4 percent, and the Nasdaq dropped 2.4 percent. US Treasury yields and oil prices, rose while the dollar declined.

Surprisingly strong new home sales figures pushed bond yields up after their correction lower Tuesday, a distinct negative for growth stocks. Bond yields remain under upward pressure as the market focuses on Treasury auctions and huge increases in supply.

Earnings news was a mixed bad Wednesday. A big selloff in Alphabet after disappointing growth in its cloud/artificial intelligence business offset more favorable results from Microsoft to weigh on the Nasdaq.

Among sectors, worst performers included trucking, chipmakers, chemicals, regional banks, and health care. Holding up better were pharma, food, aerospace & defense, waste haulers, and insurance.

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.