Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., May 15, 2024.
Brendan McDermid | Reuters
Stock futures fell on Tuesday evening after the S&P 500 posted its first back-to-back loss since early September.
Futures linked to the broad market index lost nearly 0.14%. Dow futures slid 152 points, or 0.35%, while Nasdaq 100 futures dropped 0.18%.
In after-hours action, McDonald’s fell about 7%. The U.S. Centers for Disease Control and Prevention said an E. coli outbreak tied to the fast-food giant’s Quarter Pounder burgers has resulted in 10 people being hospitalized and one death. Starbucks tumbled about 4% after the coffee chain issued preliminary quarterly results showing that its sales fell again.
In regular trading, the S&P 500 and the Dow Jones Industrial Average both posted marginal declines. The Nasdaq Composite, however, rose about 0.2%.
The 10-year Treasury yield has been on an upturn as of late, briefly topping 4.2% on Tuesday and keeping stocks under pressure.
Robust economic data and deficit worries are among the factors behind the rise in the 10-year Treasury yield – despite a half-point rate cut from the Federal Reserve in September. Traders are also growing concerned that central bank policymakers may be less inclined to reduce rates, even as the Fed had forecasted another half-point worth of trimming before the year ends.
To be sure, the backdrop for equities is still constructive, according to Jeff deGraaf, head of technical research at Renaissance Macro Research.
“The trends are still positive and we don’t have a lot of near-term momentum, but that’s not the end of the world by any means,” he said Tuesday on CNBC’s “Closing Bell.” “In fact, a lot of times that results in a good setup because it’s a consolidation.”
“By investing today, the next three months historically are never brighter than they are here at the end of October,” deGraaf added.
A slate of notable names will be reporting earnings on Wednesday. AT&T, Coca-Cola and Boeing are on deck before the bell, while Tesla and IBM will share results after the close.