Yield Surge Sends Wall Street into a Tailspin

Wall Street closed lower as rising Treasury yields affected megacap stocks. Investors' hopes for Federal Reserve rate cuts diminished amid strong economic data. Corporate troubles hit McDonald's and Coca-Cola hard, while Boeing suffered due to a strike. Meanwhile, earnings forecasts show mixed results for Nasdaq giants.

Wall Street faced a downturn on Wednesday, with Treasury yields climbing and placing pressure on megacap stocks. The Federal Reserve's expected rate cuts diminished, causing investor concern.

Notably, McDonald's and Coca-Cola experienced significant declines due to corporate news. McDonald's suffered after an E. coli outbreak linked to its burgers resulted in fatalities, while Coca-Cola's reiteration of its profit forecast amidst anticipated higher revenue did little to placate investors.

The benchmark S&P 500 experienced its third day of losses despite some companies like Texas Instruments and AT&T reporting better than expected profits. Rising rates and the upcoming presidential election continue to shape market expectations.

(With inputs from agencies.)