Stocks saw dip-buying Wednesday after Tuesday's selloff driven by inflation worries. The Dow Jones industrial average rose 0.4 percent, the S&P 500 gained 1.0 percent, and the Nasdaq advanced by 1.3 percent. US Treasury yields and oil prices declined while the dollar rose.

Bullish investors in sectors like big technology evidently viewed Tuesday's repricing as an opportunity to add to long positions. A retreat in market rates after Tuesday's surge helped equities also recover and the market's resilience fueled additional buying into the close.

Some investors appeared reassured by Chicago Federal Reserve President Austan Goolsbee's comment downplaying the disappointing consumer price report in the Fed's thinking. Goolsbee noted that the Fed's preferred inflation measure, PCE prices, has been trending down and repeated that it's a mistake to focus on one month of data. Goolsbee said the Fed must be wary of keeping rates where they are for too long.

Among sectors, best performers were industrials, communications services, and technology. Lagging were energy and consumer staples.

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.