Equities improved Wednesday on declining market interest rates and as investors viewed Federal Reserve Chair Jerome Powell's comments as having raised the bar for more rate hikes.

The Dow Jones industrial average firmed 0.7 percent, the S&P 500 gained 1.1 percent, and the Nasdaq rose 1.6 percent. US Treasury yields dropped while the dollar rose and oil prices eased.

Risk appetite got a boost as market rates declined after the US Treasury said it would slow the pace of increases in its long-term debt issuance. Rates also moved down on weaker than expected US purchasing managers data, and they fell further on the Powell comments. Powell repeated that the risk was for more rate increases but investors found that argument unconvincing.

Nine of 11 S&P sectors rose, with megacaps leading the market higher. Growth stocks outperformed with best sectors including technology and communications services while energy and consumer staples slipped.

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.