Stocks mostly edged up again Tuesday in light trading with highly-awaited comments from Federal Reserve Chair Jerome Powell not having much impact. The Dow Jones industrial average eased 0.1 percent, the S&P 500 firmed 0.1 percent, and the Nasdaq rose by 0.2 percent with the S&P and Nasdaq setting new record all time highs for a second straight day. Bond yields were mixed with shorter yields lower and longer maturity yields higher. The dollar rose and oil prices declined.

Powell repeated that officials need more evidence of inflation's sustained decline before cutting rates. He also made of point of repeating that with the labor market cooling, the Fed faces risks on both sides of its mandate. The comments did not alter the general view that rate cuts are likely to begin in September.

Investors are keen to see consumer price and producer price reports due on Thursday and Friday and the start of earnings season, with big banks including JP Morgan and Citigroup reporting early Friday.

Among sectors Tuesday, best performers included airlines, pharma, insurance, credit cards, big banks and media. Lagging were discount stores, truckers, rails, industrial metals, parcels & logistics, big oil and restaurant chains.

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.