Equities held slim ranges Tuesday although growth stocks outperformed value. The Dow eased by 0.2 percent while the S&P 500 was flat and the Nasdaq was up 0.4 percent. US Treasury yields declined in shorter maturities and rose at the longer end. The dollar was mostly weaker and oil prices rallied.

Somewhat dovish seeming comments from Federal Reserve officials this week have prompted markets to raise the odds for rate cuts. Comments have suggested officials see rate cuts ahead but the timing seems uncertain. Fed Chair Jerome Powell's appearance on Wednesday afternoon will be the main focus and Friday's employment report is up after that. Tuesday's job openings figure topped expectations and appeared to limit declines in short yields.

Megacaps outperformed Tuesday, especially Apple, Amazon, Nvidia and Meta. Best sectors included communications services, information technology, energy and health care. Lagging were industrials, financials, materials and consumer discretionary.

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.