Investing.com – U.S. stocks fell Wednesday under pressure from technology stocks, while Treasury yields continued to rise on concerns about the weaker outlook for the Fed’s rate-cutting cycle.
At 4:00 PM ET (20:00 GMT), the index was down 409 points, or 1%, down 0.9% and down 1.6%.
Apple is leading the technical stumbling block
Apple Inc (NASDAQ:) fell more than 2%, leading to a stumble in broader technology after market analysts Ming Chi Kuo op TF International, known for his talent for nailing predictions about Apple, delivered a gloomy update on iPhone 16 demand.
Kuo said Apple has canceled a total of 10 million orders for the fourth quarter of 2024 through the first half of 2025.
Boeing hit hard after biggest quarterly loss since 2020. AT&T and Coca-Cola mixed results in profit phase
Boeing Co (NYSE:) fell 3% after reporting quarterly results that missed estimates, with the aircraft maker posting its biggest quarterly loss since 2020.
Shares of AT&T (NYSE:) rose more than 4% after the telecom giant reported a $4.4 billion goodwill impairment related to its business wireline unit, which overshadowed the company by acquiring more wireless subscribers than expected in the third quarter, driven by steady adoption of its higher unlimited plans.
Shares of Coca-Cola (NYSE:) fell 2% after the soft drink giant reported sluggish demand, even as higher prices helped quarterly profits beat expectations.
Shares of Texas Instruments (NASDAQ:) rose 4% after the chipmaker reported third-quarter earnings that beat expectations, helped by electric vehicle momentum in China.
Shares of Starbucks (NASDAQ:) rose nearly 1% after the coffee chain reported preliminary fourth-quarter results, posting declines in same-store sales, net sales and profit, driven by weaker demand in the USA
Quarterly earnings season is in full swing, with about a fifth of the numbers this week.
Tesla (NASDAQ:) – the world’s most valuable automaker – will report its third-quarter earnings after the close, becoming the largest US company to report earnings this week.
Tesla’s earnings come after the EV maker’s third-quarter deliveries exceeded expectations, while the highly anticipated unveiling of its robotaxi largely underwhelmed.
McDonald’s falls under E-coli outbreak
Shares of McDonald’s (NYSE:) fell 5% after the Center for Disease Control issued a warning about an E. coli outbreak linked to the fast-food chain’s burgers. The outbreak caused 10 hospitalizations and one death in 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 compared to the Chipotle (NYSE:) crisis of 2016.
At its peak, Chipotle saw sales growth decline 29.7% in the first quarter of 2016, but McDonald’s is “well positioned to quickly contain the impact, and the impact is likely to be much more limited than CMG’s,” Wedbush said.
Treasury yields continue to rise, awaiting more statements from the Fed
Treasury yields continued to rise on Wednesday as investors braced for further comments from Fed officials likely to warn against expectations of a deep rate-cutting cycle after recent data pointing to economic strength.
The economic data calendar is relatively quiet on Wednesday, with September as the most important publication.
A member of the FOMC will also discuss her views on future monetary policy, given changing expectations that the Federal Reserve will be less aggressive in its easing in the coming months.
Attention shifts to the US presidential elections, with investors also increasingly positioning themselves in the run-up to election day on November 5.
Markets appear increasingly confident that Republican candidate Donald Trump will defeat Vice President Kamala Harris, the Democratic candidate, but a new Reuters/Ipsos poll was released showing Harris with a marginal lead of 46% up to 43% have on Trump.
This signals a tight outcome, and markets could be volatile ahead of Election Day.
(Peter Nurse, Ambar Warrick contributed to this article.)
