Losses in Magnificent Seven big tech stocks depressed the major indexes Thursday even as most stocks advanced after a supportive inflation report. The Dow Jones industrial average firmed 0.1 percent, the S&P 500 lost 0.9 percent, and the Nasdaq dropped 2.0 percent. Bond yields declined while the dollar was mixed and oil prices rose.

News that consumer prices declined in the latest month pushed down market rates sharply and helped value/cyclical stocks outperform. A big rotation out of big technology shares and momentum plays knocked the Nasdaq down sharply. Tesla and Nvidia were the day's featured losers. The move followed comments from Barclays and elsewhere questioning the concentration of gains in big technology shares relative to the rest of the market.

Investors rotated into small caps and mid caps and stocks generally expected to benefit as interest rates come down and the market rally broadens. These included homebuilders, banks, restaurants, apparel, oil servicers, food, discount retailers, and health & personal care. Lagging were chipmakers, food, airlines, software and technology hardware.

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.