Stocks were mixed but mostly better on Tuesday as investors seized on what many considered dovish aspects of comments from Federal Reserve Chair Jerome Powell. The Dow Jones industrial average rose by 0.4 percent while the S&P 500 eased 0.2 percent and the Nasdaq was down 0.8 percent. US bond yields and oil prices declined while the dollar was mixed versus major currencies.

Powell appeared to stress downside risks to the labor market, which helped many stocks recover from early weakness. Bank stocks had a good day to lift the Dow industrials after a series of earnings beats. On the other hand, major indexes were depressed as megacaps and technology shares remained pressured by worries about the US-China trade war after China retaliated against President Trump's latest threat against Chinese trade and after mixed comments from administration officials on Chinese trade.

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.