On Wall Street, he S&P 500 falls this Wednesday. Thus, the benchmark index is on its way to his third day of consecutive lossesas Treasury yields extend their upward trend.
The broad market index loses 0.8%while andl Nasdaq Composite falls 1.2%. The Industrial Average Dow Jones falls 0.8%.
Dow member McDonald’s falls more than 5% after the US Centers for Disease Control and Prevention (CDC) reported an E. coli outbreak linked to the fast-food chain’s Quarter Pounder burgers resulted in 10 hospitalizations and one death. Starbucks fell 2% after the coffee chain issued preliminary quarterly results showing a further decline in sales.
Another spike in interest rates also weighs on stocks. The yield on the 10-year Treasury bond rose 3 basis points to 4.23%, reaching levels not seen since July.
On Tuesday, higher yields put pressure on the S&P 500 and the Dow, causing both indexes to close with slight losses on the day. However, the Nasdaq rose about 0.2%.
Strong economic data and deficit concerns are among the factors behind the rise in the 10-year Treasury yield, despite a half-point interest rate cut by the Federal Reserve in September. Traders are also concerned that central bank policymakers will be less likely to cut rates, even as the Fed had forecast another half-point cut before the end of the year.
The data analyzed by Wall Street
Still, the backdrop for stocks remains favorable, according to Jeff deGraaf, head of technical research at Renaissance Macro Research.
“The trends are still positive and we don’t have a lot of near-term momentum, but that’s not the end of the world by any means,” he said Tuesday on CNBC’s “Closing Bell.” “In fact, many times that results in a good configuration because it is a consolidation”.
“Investing today is a positive, as historically, the next three months are never brighter than at the end of October,” deGraaf added.
Source: Ambito
