Spiking bond yields hit equities Monday after stronger than expected retail sales data. The Dow Jones industrial average lost 0.7 percent, the S&P 500 fell 1.2 percent, and the Nasdaq dropped 1.8 percent. US Treasury yields rose while oil prices and the dollar declined.

Rate-sensitive megacaps, especially chipmakers and big technology favorites, fell back to lead the selloff when retail sales figures renewed market concerns about an overheating economy. Trading was volatile: equities started the morning higher amid relief that Iran's revenge attack on Israel had not created an immediate conflagration in the Middle East. Risk appetite also suffered after reports suggested Israel was likely to strike back hard at Iran.

Big tech stocks like Nvidia, Microsoft and Apple led the selloff with investors making note of the benchmark 10-year note yield topping 4.60 percent. Weakest sectors included real estate, utilities, consumer discretionary, energy and communications services. Holding up best were materials, consumer staples, financials and health care.

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.