Stocks slipped for a second day Wednesday in a risk-off move after economic reports that didn't alter the view of the economic outlook, plus reaction to a range of threats from President Trump. The Dow Jones industrial average lost 0.1 percent, the S&P 500 fell by 0.5 percent and the Nasdaq dropped 1.0 percent. US Treasury yields, oil prices and the dollar all declined.

US producer price figures after Tuesday's consumer price reports, plus cautious comments from Federal Reserve officials, left intact the market's sense that any rate cuts from the Federal Reserve are far off. The market didn't react well to that, and it continues to favor risk-off mode amid President Trump's bellicose language aimed at Iran, at Denmark, and at Federal Reserve Chair Jerome Powell.

Megacaps had a bad day Wednesday to weigh hardest on the Nasdaq. Worst performers included consumer discretionary, with Amazon and Tesla among the featured losers, plus technology, where bellwethers Microsoft and Nvidia were hit. The broader market fared better, with defensive plays including health care and consumer staples holding up best.

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.