Equities retreated Thursday to give back some of their recent gains as consolidative pressures prevailed in light trading. The Dow Jones industrial average slipped 0.4 percent, the S&P 500 lost 0.9 percent and the Nasdaq dropped 1.7 percent. Bond yields and oil prices rose while the dollar dipped.

Megacaps weighed on the major averages with big technology shares including Apple, Microsoft and Nvidia seeing notable declines. Macro news didn't provide much impetus as economic data generally matched expectations. Federal Reserve speakers at the Jackson Hole conference broke no new ground ahead of Fed Chair Jerome Powell's speech coming Friday at 10 a.m. ET. Boston Fed President Susan Collins and others repeated the Fed's cautious, data-dependent stance, and suggested rate cuts are coming soon but will be gradual.

Sentiment remains positive given the market's strength lately and the S&P 500 about 1 percent below its record high. Many investors see the soft landing narrative intact and rate cuts coming in September.

Among sectors, best were energy, real estate and financials. Energy stocks had a good day as oil prices rebounded after two days of declines. Lagging sectors were consumer discretionary, technology, materials, communications services 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.