Equities retreated Wednesday as investors chose to take profits after the recent big runup. The Dow Jones industrial average fell 1.3 percent while the S&P 500 and the Nasdaq both lost 1.5 percent. US Treasury yields, the dollar and oil prices declined.

A big selloff in FedEx after it cut its guidance gave traders an excuse to unload risk positions as the market appeared overbought after rallying since October. Losses were nearly across the board with only communications services outperforming on strength in Alphabet. Financials, consumer discretionary, consumer staples, and materials all lost more than 1 percent.

In economic news, existing home sales and consumer confidence topped expectations, suggesting resilience in the consumer sector. Neither attracted much attention as trading appears to be thinning heading into year end.

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.