Traders work on the floor of the New York Stock Exchange (NYSE) on May 15, 2024 in New York City, USA.
Brendan McDiarmid | Reuters
Stock futures fell Tuesday evening after the S&P 500 index posted its first consecutive loss since early September.
Futures tied to broad market indexes fell nearly 0.1%. Dow futures fell 126 points, or 0.3%, and Nasdaq 100 futures fell 0.1%.
McDonald’s fell nearly 6% in after-hours trading. The U.S. Centers for Disease Control and Prevention announced that an E. coli outbreak linked to the fast food giant’s Quarter Pounder burger has resulted in 10 hospitalizations and one death. Starbucks fell 4% after the coffee chain released preliminary quarterly results showing sales declined again.
In regular trading, the S&P 500 and the Dow Jones Industrial Average both posted small declines. Meanwhile, the Nasdaq Composite rose about 0.2%.
The yield on the 10-year U.S. Treasury has been trending upwards, at one point exceeding 4.2% on Tuesday, and stocks remain under pressure.
Strong economic data and concerns about the budget deficit are driving the 10-year Treasury yield higher, even though the Fed cut interest rates by half a percentage point in September. Traders are also growing concerned that central bank policymakers are reluctant to cut rates, even though the Fed had expected another half-point rate cut by the end of the year.
To be sure, the stock market backdrop remains constructive, said Jeff DeGraaf, head of technical research at Renaissance Macro Research.
“Trends remain positive, there’s not a lot of short-term momentum, but it’s by no means the end of the world,” he told CNBC’s “Closing Bell” on Tuesday. “In fact, in many cases, it’s the integration that results in a better setup.”
“If you invest today, historically the next three months have never been brighter than they are now at the end of October,” De Graaf added.
Prominent companies are scheduled to announce their financial results on Wednesday. AT&T, Coca-Cola and Boeing will be on deck before the bell, while Tesla and IBM will announce their results after the close.
