Stock market today: live updates

Stocks fell sharply on Wednesday Dow Jones Industrial Average on track for its worst day in over a month as higher Treasury yields weighed on market sentiment.

The 30-stock Dow lost 570 points, or 1.3%. That put the benchmark on track for its biggest daily loss since September 3 – when it lost 1.5%. The S&P 500 fell by 1.5%. The Nasdaq Composite lost about 2.3%.

Both the Dow and S&P 500 headed for their third straight losing session.

At its session high, the benchmark 10-year Treasury yield topped 4.25%, reaching its highest level since July 26. The 10-year Treasury bond rose 44 basis points in October alone.

Treasury yields have risen sharply over the past month, even after the Federal Reserve began cutting interest rates in September. Some have pointed to recent economic data as a source for the increase, while others have pointed to the potential for growing budget deficits in the U.S. under a second Donald Trump presidency.

“For me it's all about the impact of higher interest rates. “The market is reassessing the likelihood that the Fed can aggressively cut interest rates,” said Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management. “There have been parts of the economy that have not yet felt the impact of rising interest rates, but the longer interest rates stay higher, the more different parts of the economy have to adapt to that reality… the economy has become unbalanced.”

The most overvalued part of the U.S. stock market is large caps, he said, adding that he believes the market will see a decline in the near future as recession risks persist. Megacap stocks were under pressure on Wednesday Apple And Nvidia Shares lost 3%, leading the downward trend. Apple was heading for its worst day since August 5 – when it lost 4.8%. Meta, Netflix And Amazon were also down by more than 2%.

Dow member McDonald's fell more than 4% on Tuesday after the U.S. Centers for Disease Control and Prevention said an E. coli outbreak linked to the fast food giant's Quarter Pounder burgers led to 10 hospitalizations and one resulted in death. McDonald's was responsible for more than 100 points of the Dow's decline.