Stocks slipped Tuesday in a risk-off move as traders cut positions in the big technology shares that have rallied so much lately. The Dow Jones industrial average declined 0.5 percent, the S&P 500 lost 1.2 percent, and Nasdaq dropped 2.0 percent. US Treasury yields and oil prices declined while the dollar rose.

Valuation concerns for tech stock leaders were aggravated by comments from the heads of Goldman Sachs and Morgan Stanley suggesting the market was due for a correction. Palantir was the day's featured loser on valuation worries despite its guidance and quarterly results topping expectations. The market also appeared spooked by news that investor Michael Burry, of The Big Short fame, had a large short position in Palantir and Nvidia at the end of September. It's unknown whether he still has on the shorts.

Markets appear to be focusing on bearish concerns including rising government borrowing and the prospect that inflation worries will keep the Federal Reserve from cutting interest rates as much as expected.

Among sectors, worst performers included technology, energy, chipmakers, cruise lines and airlines. Holding up best were discount stores, hotels, trucking, health care and investment banks.

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.