Stocks slipped Thursday in a pullback from record highs set on Wednesday and as the government shutdown began to wear on sentiment. The Dow Jones industrial average fell 0.5 percent, the S&P 500 eased 0.3 percent, and the Nasdaq was off 0.1 percent. US Treasury yields edged up. The dollar rose and oil prices fell.

On the ninth day of the shutdown, sentiment was hurt by worry over disruption to the economy from the shutdown. The concern was amplified after President Trump repeated his threat to close down Democrat programs permanently unless Democrats agree to reopen the government. He also has threatened not to allow back payments to furloughed workers. Separately, comments from Federal Reserve officials were mixed. New York Fed President John Williams offered dovish-seeming remarks emphasizing his concern over the weakening employment market. On the other side, Fed Governor Michael Barr appeared to focus on inflation concerns.

Big technology shares were mixed after leading major indexes to new highs on Wednesday, Apple sold off to weigh on the major averages while Meta and Nvidia slipped. Among sectors, lagging were aerospace & defense, auto parts, homebuilders and building products, trucking, and retail apparel stores. Holding up best were pharma, beverages, airlines, steel, and health & personal care.

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.