Stocks recovered from a morning drop to end slightly better Wednesday after President Trump denied reports that he was planning to fire Federal Reserve Chair Jerome Powell.

The Dow Jones industrial average rose 0.5 percent while the S&P 500 and the Nasdaq both gained 0.3 percent. US Treasury yields and the dollar declined while oil prices edged up.

News that producer prices rose somewhat less than expected depressed interest rates but the effect was limited as investors saw evidence of tariff pressures in the report, as was the case with consumer prices a day earlier. Reports that Trump was actively considering firing Powell knocked equities lower and lifted long yields late in the morning but the move reversed at noon when Trump denied that was his intention.

Among sectors, best were defensives health care and real estate, plus financials, materials and industrials. Lagging were consumer discretionary 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.