Stocks sagged Wednesday with growth and momentum stocks under pressure for a second day while value shares fared somewhat better. The Dow Jones industrial average firmed 0.1 percent while the S&P 500 lost 0.2 percent and the Nasdaq slipped 0.7 percent. US bond yields and the dollar declined while oil prices rose.

Magnificent Seven shares and big technology remained offered Wednesday amid talk that valuations have become stretched. The weakness received a spur from uncertainty around the US interest rate outlook and concerns about economic slowing. Rates also turned down Wednesday as President Trump escalated his fight to control the Federal Reserve by calling for resignation of Fed Governor Lisa Cook, a Biden appointee.

Among sectors, weak links included chain stores, airlines, cruise lines, building materials, and investment banks. Best performers included money center banks, consumer staples, health care, energy and utilities.

Trading has been quiet as markets await Fed Chair Jerome Powell's Jackson Hole appearance. There was no news in Wednesday release of minutes from the last Fed policy meeting, which preceded the surprisingly weak US jobs report and purchasing managers report suggesting the economy has slowed decisively.

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.