More consolidation undercut equities Wednesday after the market's recent advance. The Dow Jones industrial average fell 1.0 percent, the S&P 500 lost 0.9 percent and the Nasdaq was off 1.6 percent. Bond yields and the dollar index rose while oil prices dipped, and volatility measures surged.

Another day of rising bond yields was a distinct negative for equities and other risk assets, and a selloff in megacaps weighed heavily on the major averages. Amazon and Apple were among the day's worst performers. Nearly all sectors sold off, apart from defensives utilities and real estate investment trusts.

Bond yields have been rising lately as US economic resilience has raised more concern about inflation persistence. The return of the Trump trade has been another factor raising bond yields as investors brace for higher inflation and interest rates with a Republican sweep in November. A disappointing 20-year bond auction Wednesday helped bonds rise in the afternoon but buyers emerged when the 10-year note yield approached 4.25 percent.

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.