Falling bond yields supported equities Wednesday as investors view uncertainty over the Trump administration's economic plans as likely to chill growth, or at least not boost growth as much as expected. Mixed earnings reports were also in focus, including a big disappointment from Google, which lost 7 percent.

News of weaker than expected growth in the services sector added to the move down in market rates along with safe-haven buying. The Dow Jones industrial average firmed 0.7 percent, the S&P 500 gained 0.4 percent and the Nasdaq was up 0.2 percent. US bond yields, the dollar and oil prices all declined.

Concern that US tariffs on China and China's countermeasures may persist were a distinct downer for growth expectations alongside reports that uncertainty over the outlook is chilling business investment. Growth concerns were aggravated by news that the ISM services purchasing managers index eased to 52.8 in January from 54.0 in December, and comments from purchasers suggesting a negative impact on business from tariff worries. The Trump administration's push to slash the federal workforce and cut spending is seen as another concern. Investors will be watching the monthly US employment report due on Friday, which is expected to include significant downward revisions in 2024 payroll growth, to assess the economic outlook.

Among stock sectors Wednesday, best were real estate and utilities in response to lower rates, plus financials, health care and information technology. Lagging were consumer discretionary and communications services.

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.