Stocks slipped Wednesday as the market reacted to concern that the Federal Reserve may not cut rates in September after all. The Dow Jones industrial average decreased 0.4 percent, the S&P 500 eased by 0.1 percent, and the Nasdaq was up 0.2 percent. US Treasury yields, the dollar and oil prices all rose.

Markets have been assuming that the Fed would cut rates in September but Fed Chair Jerome Powell's unwillingness to furnish guidance to that effect Wednesday left many investors to conclude the Fed may well hold rates again in September. Powell said the Fed still lacked clarity on the impact of President Trump's tariff policies on inflation and the economy. Markets still look generally expect a rate cut in October and again in December.

Earlier in the day Wednesday, stocks advanced as stronger than expected US GDP figures encouraged the view that the economy is coping with tariffs and other policy problems better than expected. But Powell's comments spurred modest declines and a weaker close.

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.