Wall Street Falls as Rising Bond Yields Pressure Big Tech

Most sectors declined amid uncertainty about the future of interest rates, with McDonald’s leading the losses following reports of infections linked to its burgers.

The three major Wall Street indexes fell on Wednesday, pressured by rising Treasury yields that hit megacap stocks. The session also saw sharp declines in McDonald’s and Coca-Cola shares.

The Dow Jones Industrial Average, which tracks 30 large corporations, dropped 0.96% to 42,514.95 points. The S&P 500, representing 500 companies, lost 0.92% to close at 5,797.42 points. Meanwhile, the tech-heavy Nasdaq Composite slid 1.60% to 18,276.65.

Investor confidence weakened as doubts grew over how much further the Federal Reserve might cut interest rates, given the strong economic outlook and ongoing inflation declines. Corporate developments further added to market pressure.

Interest rate-sensitive megacap stocks like Nvidia (-2.81%) and Apple (-2.16%) fell after long-term Treasury yields rose to 4.25%.

McDonald’s dropped 5.12% after an E. coli outbreak linked to one of its burgers resulted in a fatality. Coca-Cola shares declined 2.07% following the release of its third-quarter earnings report.

Almost all sectors in the S&P 500 ended in negative territory, with utilities and real estate as the only exceptions. Within the Dow, McDonald’s led the losses, while Verizon posted the largest gain, rising 3.30%.

In significant international news, the Turkish Ministry of Defense announced that its forces attacked more than 30 Kurdish targets in northern Iraq and Syria. This military action follows a terrorist attack on the headquarters of Turkish Aerospace Industries (TAI) in Ankara, which left at least five people dead and 22 injured.

“Aerial operations have been carried out against terrorist targets in northern Iraq and Syria. A total of 32 targets were successfully destroyed. Our air operations continue with determination,” the Ministry stated in a press release, as reported by the Anatolia news agency.