Equities recovered from bigger declines to end marginally lower Thursday but sentiment appeared dented by disappointing consumer price and jobless claims reports. The Dow Jones industrial average eased 0.1 percent, the S&P 500 lost 0.2 percent and the Nasdaq was down 0.1 percent. Bond yields and dollar currency pairs were mostly lower while oil prices jumped.

Equities came under early pressure after CPI came in somewhat hotter than expected, which added to concerns that the Federal Reserve is unlikely to deliver rate cuts as aggressively as many investors hoped. Jobless claims, on the other hand, came in much higher than expected. The Bureau of Labor Statistics said Hurricane Helene and strike activity skewed the numbers higher but many investors didn't get that message and fretted about a weakening labor market.

Comments from Fed officials were mixed but the market seemed to focus on Atlanta Fed President Bostic's remark that uncertain recent data might argue for a pause in rate cuts in November. Other officials downplayed the latest CPI report and stressed the ongoing disinflationary trend.

Among sectors, lagging were homebuilders, airlines, chipmakers, grocery stores, and aerospace & defense. Best were insurance, energy, industrial metals, drug stores, rails, managed care and cybersecurity.

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.