Weakness in megacaps and technology shares led broad weakness in equities Wednesday though the major indexes recovered from their lows into the close. The Dow Jones industrial average eased 0.4 percent, the S&P 500 dipped 0.6 percent, and the Nasdaq fell 1.1 percent. Bond yields rose while oil prices and the dollar slipped.

Tech shares were hit as chipmakers saw selling ahead of earnings news from Nvidia and on news of financial reporting trouble at Super Micro Computer. Other weakest sectors included energy, toys, casinos, cruise lines, industrial metals, homebuilders and food. Sectors holding up best were department stores, banks, credit cards, insurance, trucking, tobacco and health care.

Not much in macro news Wednesday. A poorly-received U.S. Treasury 5-year note auction pushed rates higher despite a much better 2-year note auction Tuesday. In addition to Nvidia earnings late Wednesday, investors are keying on weekly jobless claims data Thursday and personal income and spending figures due on Friday, including closely-watched inflation figures.

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.