De-risking and worries about delays in hoped for interest rate cuts hurt equities Tuesday. The Dow Jones industrial average and the Nasdaq both declined 1.0 percent and the S&P 500 lost 0.7 percent. US Treasury yields rose at the long end and declined in the short and intermediate sectors. Oil prices and the dollar rose.

Investors appear inclined to pare risk positions as the second quarter begins following a strong first quarter, and after cautionary comments from Federal Reserve Chair Jerome Powell, who said officials are in no rush to cut rates. US 10-year and 30-year yields were up 4-5 basis points Tuesday.

Health insurance companies were notable decliners Tuesday after the Biden administration disappointed the market with its planned Medicare payment rates for the year ahead. Tesla was another notable decliner after reporting disappointing declines in its deliveries of vehicles.

Among sectors, big technology had a bad day. Other laggards included chipmakers, retail/apparel, software, airlines, media, and homebuilders. Better performers included energy, metals, exchanges, chemicals, food, and machinery.

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.