Investing.com -- U.S. stocks slumped Wednesday, pressure by tech stocks as Treasury yields continued to climb on concerns about more shallow outlook for the Fed's rate cut cycle.
At 4:00 p.m. ET (20:00 GMT), the Dow Jones Industrial Average fell 409 points, or 1%, the S&P 500 index fell 0.9%, and the NASDAQ Composite fell 1.6%.
Apple leads tech stumble
Apple Inc (NASDAQ:AAPL) fell more than 2%, leading a stumble in broader tech after market analyst Ming-Chi Kuo at TF International, known for his knack of nailing predictions on Apple, delivered a gloomy update on iPhone 16 demand.
Kuo said Apple has cut a total of 10 million orders for the fourth quarter of 2024 through the first half of 2025.
Boeing a big drag after largest quarterly loss since 2020l AT&T, Coca-Cola mixed fortunates on earnings stage
Boeing Co (NYSE:BA) fell 3% after reporting quarterly results that missed estimates, with the aircraft maker suffering its largest quarterly loss since 2020.
AT&T (NYSE:T) stock rose more than 4% after the telecoms giant reported a $4.4 billion goodwill impairment charge related to its business-wireline unit, which has overshadowed the company gaining more wireless subscribers than expected in the third quarter, driven by the steady adoption of its higher-tier unlimited plans.
Coca-Cola (NYSE:KO) stock fell 2% after the soft drinks giant reported sluggish demand, even as higher prices meant that quarterly earnings beat expectations.
Texas Instruments (NASDAQ:TXN) stock rose 4% after the chipmaker reported third-quarter income that topped expectations, helped by "momentum" for electric vehicles in China.
Starbucks (NASDAQ:SBUX) stock rose nearly 1% after the coffee chain reported preliminary results for its fourth quarter, posting declines in same-store sales, net revenue, and profit, driven by weaker demand in the US.
The quarterly earnings season has clicked into full gear, with about a fifth of the S&P 500 reporting this week.
Tesla (NASDAQ:TSLA) - the world’s most valuable automaker - will report its third-quarter earnings after the close, the largest U.S. firm to report earnings this week.
Tesla’s earnings come after the EV maker’s third-quarter deliveries missed expectations, while the long-awaited reveal of its robotaxi largely underwhelmed.
McDonald’s falls on E-coli outbreak
McDonald’s (NYSE:MCD) stock fell 5% after the Center for Disease Control issued an alert over an E. coli outbreak linked to the fast food chain’s burgers. The outbreak caused 10 hospitalizations and one death across 10 states, the CDC said.
Still, analysts at Wedbush downplayed concerns about a significant financial hit to McDonald's, saying the impact would be limited when compared to the Chipotle (NYSE:CMG) 2016 crisis.
At peak impact, Chipotle saw same store sales growth down 29.7% in Q1 2016, but McDonald’s is "well positioned to contain quickly, and any impact likely much more limited than CMG," Wedbush said.
Treasury yields continue rose ahead of more Fed speak
Treasury yields continued to rise on Wednesday as investors brace for further remarks from Fed officials likely to caution against expectations for a deep rate cutting cycle following recent data pointing to economic strength.
The economic data calendar is relatively quiet Wednesday, with existing home sales for September the main release.
FOMC member Michelle Bowman is also scheduled to speak, and her views on future monetary policy given the shifting expectations of the Federal Reserve being less aggressive in its easing over the next few months.
Focus is turning towards the U.S. presidential election, with investors also increasingly positioning ahead of the Nov. 5 polling day.
Markets seem to becoming more confident that Republican candidate Donald Trump will beat Vice President Kamala Harris, the Democratic candidate, but a new Reuters/Ipsos poll was published showing Harris with a marginal 46% to 43% lead over Trump.
This suggests a tight outcome, and markets could well be volatile in the run up to the polling day.
(Peter Nurse, Ambar Warrick contributed to this article.)