Stocks sagged Tuesday amid weakness in megacap technology shares and ongoing worries about fallout from tariffs. The Dow Jones industrial average lost 1.0 percent, the S&P 500 fell 0.8 percent, and the Nasdaq was off 0.9 percent. Bond yields declined with demand good for the 10-year note auction, another sign that appetite for US Treasuries is holding up well. The dollar declined and oil prices rose.

Tesla slipped after reporting weakening European sales. Apple, Alphabet, Amazon, Meta, Microsoft and Nvidia were all lower. The losses in the big growth stocks came despite lower market interest rates. Palantir was the day's featured loser despite reporting earnings in line with expectations.

Comments from companies about impact of tariffs and another day of no news of progress in trade talks undercut risk appetite Tuesday. Ford and Mattel were among companies suspending their guidance for 2025 in light of uncertainty over the impact of tariffs.

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.