Equities remained in a funk Thursday to extend Wednesday's selloff as the market struggled with hawkish-sounding Federal Reserve comments. The Dow Jones industrial average sank 0.9 percent, the S&P 500 slipped 0.6 percent, and the Nasdaq declined 1.1 percent. Bond yields and oil prices fell while the dollar rose.

Company news was mixed with the Dow industrials hit hardest by a huge 20 percent drop in Salesforce stock after the software company projected slow quarterly revenue growth. Nvidia and chipmakers came under selling pressure after headlines about possible delays in chip sales to the Middle East. On the positive side, Corning rallied after an upgrade from JP Morgan.

Microsoft and Amazon were among megacaps selling off to depress the major averages. A retreat in bond yields after their gains this week provided a degree of support as the bond market appeared oversold and economic data was supportive, including softer than expected consumption and inflation readings in the day's gross domestic product report, plus weaker than expected pending home sales.

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.