Stocks lost ground Monday in a mild risk-off trade as they corrected a string of five consecutive gains for the S&P 500. The Dow Jones industrial average declined 0.9 percent, the S&P 500 slipped 0.5 percent , and the Nasdaq was down 0.4 percent. US Treasury yields rose, the dollar was nearly flat, and oil prices rose.

Talk of Bank of Japan rate increases biased yields higher, which contributed to the risk-off mood. Yield were also pressured upward by rising expectations that President Trump will choose his aide, Kevin Hassett as the next Federal Reserve chair, which would bring more aggressive rate cuts. Markets did not get much impetus from a weaker than expected ISM manufacturing report, which appeared to suffer from tariff effects.

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.