Equities ended nearly flat Wednesday in a mixed showing as the market lacked impetus to extend its recent gains. The Dow Jones industrial average firmed 0.1 percent, the S&P 500 was flat and the Nasdaq eased 0.3 percent. US Treasury yields declined at the short end and rose at the longer end. The dollar and oil prices rose.

Relief over an as-expected consumer price report bolstered expectations for a 25 basis point rate cut in December from the Federal Reserve, which supported the shorter end of the Treasury yield curve. Many traders had braced for an upside surprise on CPI. However, as the day progressed, concern over lack of progress in reducing core inflation hurt the longer end of the curve, which lifted longer yields.

Weakness in chipmakers undercut technology shares. Key megacaps, including Apple and Microsoft, were buoyant to limit the downside for the major indexes. Among sectors, technology and communications services lagged. Best performers included energy, consumer discretionary, and real estate.

Markets are keying on more top tier economic reports Thursday, including producer prices and jobless claims, plus retail sales and industrial production on Friday.

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.