Equities were mixed but mostly weaker Tuesday with a better showing for megacaps offsetting modest broad declines elsewhere. The Dow Jones industrial average eased 0.2 percent, the S&P 500 declined 0.1 percent, and the Nasdaq firmed 0.3 percent. The dollar, oil prices, and US Treasury yields all declined.

The day's big news was another move down in bond yields after a surprisingly weak job openings report. That followed news overnight that Moody's cut China's credit outlook to negative from stable, and dovish comments from European Central Bank's Isabel Schnabel, who is regarded as a policy hawk.

Activity was sluggish as the market appears to be in waiting mode before employment figures due Friday and inflation reports next week.

Among sectors, best were technology and consumer discretionary while lagging were energy, industrials, real estate, materials, and utilities. Oil prices remained under pressure amid signs of a global oil glut despite Saudi pledges to lead output cuts.

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.