The Dow plunges 600 points while McDonald's shares sink and Spirit soars

The Dow Jones Industrial Average and other major indexes suffered sharp declines Wednesday afternoon as the yield on the benchmark 10-year U.S. Treasury note continued its upward climb, reaching 4.23% – a level not seen since July.

In the afternoon, the Dow fell 631 points, or 1.4%, heading for its worst day in more than a month. Meanwhile, the tech-heavy Nasdaq and S&P 500 fell 2.2% and 1.4%, respectively. However, there was some relief among investors as oil prices fell, with West Texas Intermediate (WTI) futures trading at around $70.65 a barrel.

The Federal Reserve's Beige Book, released in the afternoonreported that economic activity in the 12 Federal Reserve Districts remained largely unchanged, with the Southeast significantly affected by a harsh storm season.

All eyes will be on Tesla on Wednesday (TSLA-1.96%), as the company prepares to release its latest earnings report. Analysts expect earnings per share of 60 cents, down from 66 cents a year ago but an improvement from 52 cents in the previous quarter. according to FactSet estimates. Revenue is expected to reach $25.4 billion, compared to $23.3 billion in the third quarter of 2023 and $25.5 billion in the previous quarter.

Aside from Tesla, investors are closely watching earnings reports of other major companies, including AT&T (T+4.68%), Boeing (B.A-1.45%) and Coca-Cola (KO-1.79%).

McDonald's shares plunge over 5%

McDonald's (MCD-5.01%) shares suffered a sharp decline and subsequently fell over 5% The Centers for Disease Control and Prevention (CDC) has linked the chain's Quarter Pounder burgers to an E. coli outbreak. The outbreak resulted in ten hospitalizations and one death, causing McDonald's shares to fall significantly during the afternoon trading session.

So far, 49 cases have been reported in 10 states between September 27 and October 11, with most illnesses occurring in Colorado, Nebraska, Utah and Wyoming. The CDC found that most of those affected had eaten a Quarter Pounder. Investigators are working quickly to identify the contaminated ingredient.

Spirit Airlines Stock Rises 30%

After one failed attempt in the merger with JetBlue (JBLU-1.70%), ultra-low-cost carrier Spirit Airlines (SAVE+50.15%) Is He is reportedly returning to a trusted partner. The Wall Street Journal (NWSA-1.00%), citing people familiar with the matter, Reports that Spirit and Frontier Airlines (ULCC+2.90%) are in initial discussions about a possible merger. The news sent Spirit shares up nearly 30% on Wednesday.

–Francisco Velasquez and Rocio Fabbro contributed to the article