Wall Street Woes: Rising Treasury Yields Impact Megacap Stocks and Market Sentiment

Wall Street witnessed a decline as rising Treasury yields pressured megacap stocks. Concerns over reduced Federal Reserve rate cuts and negative corporate news impacted McDonald's and Coca-Cola. The tech-heavy Nasdaq fell significantly, with notable losses in rate-sensitive megacaps like Nvidia and Amazon, amid strong economic data and an upcoming presidential election.

Wall Street faced a downturn on Wednesday, weighed down by escalating Treasury yields that pressured megacap stocks. Investors are losing confidence in significant Federal Reserve rate cuts, as corporate concerns hit companies like McDonald's and Coca-Cola, both of which slumped due to negative developments.

Benchmark 10-year Treasury yields peaked at a three-month high, prompting investors to reassess the Fed's rate-cut outlook amid strong economic indicators and the looming presidential election. The upswing in yields has left the market struggling, as higher rates burden stocks, according to Adam Turnquist, chief technical strategist for LPL Financial.

The tech-centric Nasdaq suffered a downturn with semiconductor giants such as Nvidia and mega brands like Apple and Amazon dragging down the Information Technology sector. Meanwhile, the S&P 500 experienced a third day of consecutive losses, reflecting broader market volatility influenced by shifting monetary policies and corporate performance as the election nears.

(With inputs from agencies.)