Equities ended narrowly mixed but mostly better Wednesday after a soft report on the services sector and comments from Federal Reserve Chair Jerome Powell. The Dow Jones industrial average eased 0.1 percent, the S&P 500 firmed 0.1 percent, and the Nasdaq edged up 0.2 percent. US Treasury yields declined while oil prices and the dollar rose.

Equities got a lift as U.S. interest rates declined at midmorning after purchasing managers data showed weaker than expected growth in services and a lower reading on inflation. Interest rates made another leg lower after Powell's comments, in particular his reassurance that policy is restrictive and that inflation expectations remain contained. Powell generally repeated what he and other officials been saying lately.

Growth and momentum stocks outperformed while value and cyclicals lagged. Best sectors included precious metals, chipmaking equipment and homebuilders. Consumer staples lagged along with airlines, retail, and biotech.

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.