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Tech losses and rate concerns push Wall Street lower

2 hours ago
2 hours ago


Wall Street Ends Lower as Treasury Yields Climb

On October 23, Wall Street experienced a downturn as climbing Treasury yields put pressure on megacap stocks, and investor confidence waned regarding strong rate cuts from the Federal Reserve. Corporate news also had an impact on the market, particularly affecting McDonald’s and Coca-Cola.

Treasury Yields Reach Three-Month High

  • Benchmark 10-year US Treasury yields reached a three-month high.
  • Investors are reassessing the Fed rate-cut outlook in light of strong economic data and the upcoming presidential election.
  • Higher rates are pressuring stocks, according to Mr. Adam Turnquist, chief technical strategist for LPL Financial.

    Megacap Stocks and Tech Sector

  • Rate-sensitive megacaps such as Nvidia, Apple, Meta Platforms, and Amazon experienced declines.
  • This pressure dragged down the tech-heavy Nasdaq.
  • Out of the 11 S&P sub-sectors, only utilities and real estate saw gains.

    Market Indices

  • The Dow Jones Industrial Average fell 409.94 points, or 0.96%.
  • The S&P 500 lost 53.78 points, or 0.92%.
  • The Nasdaq Composite lost 296.47 points, or 1.6%.

    Corporate News Impact

  • McDonald’s saw a significant drop of 5.12% following an E. coli infection linked to its Quarter Pounder hamburgers.
  • Coca-Cola fell 2.07% despite reiterating its annual profit growth forecast.
  • The broader consumer discretionary sector dropped 1.82%, with information technology down 1.68%.

    Other Market Highlights

  • Boeing dropped 1.76% after reporting a quarterly loss of US$6 billion due to a crippling strike.
  • Semiconductor company Texas Instruments gained 4% after beating profit forecasts.
  • AT&T rose 4.6% after gaining more wireless subscribers than expected in the third quarter.

    In conclusion, the market faced challenges due to climbing Treasury yields and corporate news affecting key players such as McDonald’s and Coca-Cola. The impact of these developments led to declines in major indices and specific sectors. It is essential for investors to stay informed about market trends and company-specific news to make well-informed decisions.

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