Stocks slipped Tuesday amid rising bond yields with big technology momentum trades seeing profit-taking, especially Nvidia, the tech bellwether and index heavyweight. Many market participants noted September is often a tough month for stocks and it got off to a gloomy start. The Dow Jones industrial average dipped 0.6 percent, the S&P 500 lost 0.7 percent, and the Nasdaq was down 0.8 percent. US Treasury yields, the dollar, and oil prices all rose.

Uncertainty around tariffs undermined sentiment after an appeals court ruled that most of President Trump's tariffs were illegal though the court left the tariffs in place for now. Meanwhile, the latest US manufacturing purchasing managers report pointed to ongoing contraction in the sector with rising price pressures, not a favorable mix for the economic outlook. Monthly construction spending figures also came in softer than expected.

Among sectors, weakest links, in addition to technology, included travel & leisure, automakers, homebuilders, chemicals, banks, and parcels and logistics. Holding up best were consumer staples, energy, precious metals, managed care and retail.

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.