Major stock indexes edged down for a second straight day Wednesday as the market continued to consolidate its recent gains and as some investors saw valuations at excessive highs. The Dow Jones industrial average slipped 0.4 percent and the S&P 500 and the Nasdaq both lost 0.3 percent. US Treasury yields, the dollar and oil prices all advanced.

Federal Reserve Chair Jerome Powell's comment Tuesday that stocks appear highly valued continued to resonate with investors after the major stock indexes posted a series of record highs, and as big technology shares and other momentum favorites appeared to run out of steam for the moment.

Trading lacked impetus Wednesday and activity was cautious ahead of a big batch of economic indicators on Thursday, including jobless claims, durable goods and existing home sales, followed by personal income and spending and consumer sentiment on Friday. Several Federal Reserve speakers are on the calendar for Thursday and Friday too, of interest as the market assesses the outlook for rate cuts.

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.