Tech sell-off drags stocks to worst day in 6 weeks

NYSE Traders working during the opening bell.

US stocks notched their worst losses in over a month, driven by rising bond yields that dragged tech shares lower.

Major averages tumbled, with the Dow Jones Industrial Average losing over 400 points and the Nasdaq Composite losing 1.6%.

The session marks the third losing day in a row for the S&P 500 and the Dow, which both traded at all-time highs at the end of last week.

Apple led a decline in tech stocks after a prominent supply chain analyst said the company was seeing waning demand for its new iPhone 16. The stock dropped as much as 3% Wednesday afternoon, and closing lower by more than 2% to mark its worst day since early August.

Nvidia, Amazon, Microsoft, and other large-cap tech stocks also moved lower in Wednesday trades.

Tesla shares slid 2% as traders headed into the carmaker’s third-quarter earnings results, which will be published after the closing bell. Wall Street expects the company to report $25.43 billion in revenue, with analysts keeping a close eye on profit margins for the last quarter.

Bond yields continued to rise on Wednesday, with prices extending the week’s decline as traders dialed back expectations for coming Fed rate cuts amid hot economic data and cautious comments from officials this week.

Odds for 75 basis points of cuts through January of next year dropped to 44%, down from 66% last week, according to the CME FedWatch tool.

The yield on the 10-year US Treasury briefly rose above 4.25% and hovered around its highest level since July.

“Treasury yields continue to move higher this week, which is causing the stock market to settle down,” Louis Navellier, the chief investment officer of Navellier & Associates, said in a note.

“The stock market is going to need some earnings surprises from more flagship stocks to get its “mojo” back. Fortunately, next week will be the biggest week for earnings announcements.”

MacDonald’s stock ended 5% lower as traders reacted to the news of an E.Coli outbreak linked to the chain’s Quarter-Pounder, which the Centers for Disease Control and Prevention said had caused one death and numerous hospitalizations.

Here’s where US indexes stood at the 4:00 p.m. closing bell on Wednesday:

• S&P 500: 5,797.42, down 0.92%

• Dow Jones Industrial Average: 42,514.95, down 0.96% (-409.94 points)

• Nasdaq composite: 18,276.65, down 1.6%

Here’s what else is going on:

• Here are a few theories about the “whale” betting big on a Trump win in November.

• Existing home sales hit a 14-month low in September.

• The stock market is flashing a signal that preceded a 10% slump in the past, according to Citi.

• One global market is already pricing in a Trump victory.

• Energy markets are “schizophrenic” amid rising geopolitical tensions and China’s stimulus, according to one energy expert.

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil was down 1.37% to $70.76 a barrel. Brent crude, the international benchmark held steady around $74.99 a barrel.

• Gold slipped 1.2% to $2,715.75 an ounce.

• The 10-year Treasury yield climbed three basis points to 4.24%.

• Bitcoin fell 1.7% to $66,294.