Stocks resumed their recent downtrend Tuesday after a two-day bounce as traders used Monday's uptick as an opportunity to pare risk exposure. Investors see more downside and expect more bearish news on tariffs from President Trump on April 2.

The Dow Jones industrial average lost 0.6 percent, the S&P 500 fell 1.1 percent, and the Nasdaq was off 1.7 percent. US bond yields and oil prices declined while the dollar was mostly weaker against major currencies.

Magnificent Seven and megacap stocks lagged as did growth stocks generally as investors appeared keen on moving out of sectors that have been the biggest winners for the last few years. Alphabet, Meta, Tesla, Palantir, and Nvidia were among the day's biggest losers. Risk appetite suffered Tuesday from the same concerns that weighed on stocks last week, with the resumption of war in Gaza another worry. Markets did not react to news of President Trump's tentative agreement with Russian President Putin for an energy sector ceasefire in Ukraine. Nor was there much reaction to stronger than expected results in US housing starts and industrial production reports.

Among sectors, worst were technology, communications services, consumer discretionary and consumer staples. Holding up best were health care and energy.

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.