Stocks reversed early gains to end lower Wednesday as big technology shares and chipmakers rolled over and the market failed to extend Tuesday's rebound effort. The Dow Jones industrial average lost 0.6 percent, the S&P 500 dipped 0.8 percent, and Nasdaq fell 1.1 percent. Bond yields, the dollar and oil prices all rose.

Chip stocks tanked after disappointing quarterly results from Super Micro Computer with AI darlings Nvidia and Broadcom getting hit. Megacaps that saw good gains early fell back, including Alphabet, Amazon, Meta and Microsoft. Company news undercut sentiment with Novo Nordisk off sharply after disappointing sales results and Airbnb down on weak guidance.

A poorly-received U.S. Treasury 10-year note auction pushed up yields and weighed on risk sentiment in the afternoon. The 10-year yield priced three basis points above where the when-issued 10-year was trading at auction time. Earlier, risk sentiment got a lift after a Bank of Japan official's suggested the BOJ was unlikely to raise rates while markets are unstable. That remark reassured investors who have been watching for a resumption of the unwind of the yen carry trade that destabilized markets Monday.

In a week of limited economic news, there will be a lot of focus on the weekly jobless claims report due Thursday. Observers will watch for confirmation of last week's weak employment report and for more information suggesting that Hurricane Beryl skewed July payrolls figures lower.

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.