US stocks drop as McDonald’s sinks on food positioning outbreak
Date
11/13/2024 8:40:06 AM
(MENAFN) Wall Street Stocks dropped early Wednesday, burdened by another increase in US Treasury bond yields and weakness in McDonald's and Starbucks after negative news.
Analysts have highlighted the uncertainty surrounding the recent rise in US Treasury yields, unsure whether it signals an improved economic growth outlook or reflects concerns about a potential inflation resurgence and the US budget deficit.
About 30 minutes into the trading session, the Dow Jones Industrial Average dropped 0.5 percent to 42,711.30.
The S&P 500, which represents a broad market view, fell by 0.3 percent to 5,832.61, while the Nasdaq Composite, heavily weighted with technology stocks, lost 0.5 percent, reaching 18,490.09.
On the corporate front, McDonald's saw a 6.1 percent drop following reports from US health officials linking a deadly E. coli outbreak to the chain's Quarter Pounder hamburgers. The company announced it was temporarily removing the item from certain states, with most of the 49 reported cases centered in Colorado and Nebraska, according to the US Centers for Disease Control and Prevention.
Starbucks also experienced a 1.0 percent decline after forecasting a seven percent drop in fourth-quarter global comparable sales, citing weaker-than-expected revenue in North America during the period.
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