Stocks slipped Thursday amid credit worries after two regional banks, Zions and Western Alliance, dropped after reporting trouble at counterparties. Dow Jones industrial average lost 0.7 percent, the S&P 500 fell 0.6 percent, and the Nasdaq was down 0.5 percent. US Treasury yields, oil prices and the dollar all fell.

Worries that there may be more bad loans yet to emerge in the banking sector weighed on market sentiment even as many big banks have reported strong quarterly results. US Treasury yields fell on a flight to quality on the credit concerns. Earnings news came in mixed with Hewlett Packard dropping on disappointing guidance. On the positive side, Salesforce rallied on upbeat guidance.

Among sectors, chip stocks had a good day after Taiwan Semiconductor reported an earnings beat, reflecting rising demand for AI processors. Energy suffered as oil prices fell on President Trump's statement that India would stop buying Russian oil.

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.