Topline

A rare bad week for the stock market turned bleaker on Wednesday as an $11 billion hamburger sell-off and steep losses in major technology stocks pushed U.S. stock indexes to their worst day in six weeks.

Important facts

Why are stocks down today?

Aside from isolated triggers like the foodborne illness scare at McDonald’s and an analyst report pointing to lower-than-hoped sales for Apple’s iPhone 16, behind many of the losses was a familiar enemy: rising Treasury yields. The benchmark 10-year U.S. Treasury note rose to a three-month high above 4.25% on Wednesday. The rise comes amid fresh worries about what next month’s election will mean for rising U.S. national debt and falling expectations of further rate cuts by the Federal Reserve amid inflation concerns and solid economic growth data. Higher yields on government bonds often lead to more expensive corporate financing and reduce profit margins. Large technology companies are typically considered one of the groups most affected by higher returns because future profits are discounted in valuation models.

Cons

Even with the S&P on track for its first three-day losing streak since the first week of September, the U.S. benchmark index is still just 1.6% below its all-time closing high set on Friday. The S&P remains up 21% this year excluding dividends and rose 0.2% in October after posting its best first nine months since 1997.

What you should pay attention to

Tesla will report its third-quarter results after the bell on Wednesday, kicking off earnings season for big tech companies.

Further reading

ForbesTreasury yields rise to a three-month high as concerns about the national debt grow under Harris and Trump policiesFrom Derek Saul