Markets faced downward pressure Wednesday as major indices declined for a third consecutive session. The S&P 500 declined 1.12%, while the Nasdaq Composite experienced a steeper drop of 1.87%. The Dow Jones Industrial Average fell 1.03%, with the Russell 2000 following suit, down 1.02%.
The highly-watched Magnificent 7 technology stocks all traded lower, with Tesla dropping 2% ahead of its anticipated earnings release later in the day. Notable gainers in the S&P 500 included Northern Trust, which surged 7.8%, followed by Packaging Corp of America rising 5.7%, and Teledyne Technologies advancing 4.9%. AT&T and Texas Instruments also showed strength, gaining 4.1% and 3.8% respectively.
On the downside, Enphase Energy led decliners with a 14.6% drop, while CoStar fell 8.6% and Seagate Technology declined 7.5%. Other significant technology names also struggled, with Nvidia down 3.6%, Apple falling 2.7%, and Tesla declining 2.2%.
McDonald’s shares tumbled 5% following reports from the CDC linking an E. coli outbreak to the company’s Quarter Pounder burgers. The outbreak, which affected 49 individuals across 10 states, resulted in 10 hospitalizations and one fatality. The investigation points to slivered onions as the potential source, prompting McDonald’s to remove the ingredient from affected locations and halt distribution in impacted areas.
Starbucks experienced modest pressure, dropping 0.2% after releasing preliminary quarterly results showing continued sales challenges. Under new CEO Brian Niccol, formerly of Chipotle Mexican Grill, the coffee chain reported a 3% sales decline and a concerning 7% drop in same-store sales – the largest decrease since the pandemic period. Despite these headwinds, the company increased its dividend from 57 to 61 cents per share and announced plans to reveal a comprehensive “Back to Starbucks” strategy during its October 30 earnings call.
Coca-Cola shares declined 2% despite exceeding quarterly earnings expectations. The beverage giant reported earnings per share of 77 cents, surpassing analysts’ projections of 74 cents, while revenue reached $11.95 billion, beating estimates of $11.60 billion. However, unit case volume decreased by 1%, with CEO James Quincey noting particular weakness among price-sensitive consumers, especially in international markets like China and Mexico. During the earnings call, Quincey emphasized that lower-income consumers remain under pressure, particularly when making at-home purchasing decisions.
The broader market sentiment remained cautious as investors processed these corporate developments against a backdrop of persistent economic concerns. Major technology stocks continued to face selling pressure, with Apple, Nvidia, and Tesla all trading lower, reflecting broader market uncertainty and sector-specific challenges.
The day’s trading activity highlighted ongoing concerns about consumer spending patterns, international market dynamics, and corporate performance across various sectors. While some companies managed to post gains despite the challenging environment, the overall market trajectory suggested continued investor caution amid mixed corporate results and broader economic uncertainties.