Major stock indexes retreated Tuesday amid profit-taking after setting record highs Monday -- though the broad market fared better. The Dow Jones industrial average eased 0.2 percent, the S&P 500 lost 0.6 percent, and the Nasdaq dropped 1.0 percent. US Treasury yields and the dollar declined while oil prices advanced.

Megacaps retraced some of their recent strong gains with Nvidia, the technology bellwether, giving back most of Monday's advance. Amazon, Apple, and Microsoft were among the day's decliners.

Comments from Federal Reserve Chair Jerome Powell didn't generate much response as he largely repeated what he and other Fed officials have been saying lately, though his comment that he sees stocks as fairly highly valued weighed on risk appetite. Fed officials appear to be divided about prospects for multiple rate cuts this year given ongoing inflation concerns.

Among sectors, best performers included real estate, energy, health care and consumer staples, while lagging were information technology, consumer discretionary, and communications services.

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.