Stocks fell sharply on Wednesday, with the Dow Jones Industrial Average posting its worst day in more than a month, as higher Treasury yields weighed on market sentiment.

The S&P 500 lost 0.92%, closing at 5,797.42. The 30-stock Dow plunged 409.94 points, or 0.96%, ending the day's session at 42,514.95. It was the worst day since early September for the blue-chip index. The Nasdaq Composite lost 1.6%, ending at 18,276.65.

Both the Dow and S&P 500 notched 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.

Treasury yields have been soaring 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 move higher, while others have noted the potential of growing fiscal deficits in the U.S. under a second Donald Trump presidency.

"To me, it's all about the impact of higher rates. The market is repricing the probability that the Fed can aggressively cut rates," said Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management. "There have been parts of the economy that haven't felt the impact of rising interest rates yet, but the longer rates remain higher, the more different parts of the economy have to reprice to that reality … the economy is out of equilibrium."

The most overvalued part of the U.S. equity market is large caps, Schutte said, adding that he believes the market is due for a pullback in the near term as recession risks linger.

Megacap stocks were under pressure Wednesday, with Apple and Nvidia shares losing more than 2%. Meta Platforms slid 3%, while Netflix and Amazon were lower by roughly 2%.

Dow member McDonald's closed more than 5% lower. The Centers for Disease Control and Prevention said late Tuesday that an E. coli outbreak tied to the fast-food giant's Quarter Pounder burgers has resulted in 10 hospitalizations and one death.

U.S. stocks end Wednesday lower

Both the S&P 500 and the Dow had their third straight day of losses this week.

The 30-stock Dow plunged 409.94 points, or 0.96%, ending the day's session at 42,514.95. The S&P 500 lost 0.92%, closing at 5,797.42.

The Nasdaq Composite lost 1.6%, ending at 18,276.65.

— Pia Singh

Wells Fargo sees near-term challenges for stocks before 2025 rally

The stock market may have already banked its gains for 2024, but that does not mean investors should shift away from equities, according to Wells Fargo.

Darrell Cronk, president of the Wells Fargo Investment Institute, said in a note to clients that stocks do not have much near-term upside but could rally again next year.

"Our expectation is that equity markets may struggle to advance meaningfully past recent highs in the near term as economic, political, and geopolitical uncertainties persist," the note said.

"We would view periods of near-term weakness in equity markets as potential opportunities given our 2025 outlook, which forecasts a broad-based recovery that supports improved revenue growth and expanding margins," Cronk continued.

Wells Fargo has a target range of 5,300 to 5,500 for the S&P 500 for the end of this year, which is below where the index closed Tuesday.

— Jesse Pound

What Wall Street is looking for in Tesla earnings

Tesla shares slumped 2% ahead of the company's third-quarter print after the bell, and the stakes are high.

The earnings release comes amid a rough patch, with shares down 13% in 2024 and 17% this month. The electric vehicle giant posted disappointing third-quarter delivery numbers and faces mounting competition at home and abroad.

Here's what Wall Street expects.

— Samantha Subin

Wells Fargo hikes price target on Carvana, says momentum can continue

Carvana's recent outperformance can continue, according to Wells Fargo.

Analyst David Lantz hiked his price target on the used vehicle retailer to $250 from $175, implying more than 25% upside from where the stock closed Tuesday, citing improving fundamentals. Carvana shares are up more than 270% this year.

"Despite CVNA's outperformance (+31% since Aug vs. +4% SPX), we lean long into Q3, & see pot'l unit/Adj EBITDA upside w/ signs of improving fundamentals & ramping inventory selection," Lantz wrote. "Broad-based GPU opportunities remain & share gain pot'l early days."

— Sarah Min

Baird upgrades shares of Quest Diagnostics, cites 'favorable' sector trends

Quest Diagnostics could see accelerating growth heading into next year and beyond, according to Baird.

The firm upgraded the stock to outperform from neutral, and its updated price target reflects more than 15% upside from Tuesday's close.

Analyst Eric Coldwell believes Quest Diagnostics' lab fundamentals are still strong and expects the company to continue to capture market share in the lab sector. He sees at least around 3% of organic revenue growth in the long term.

"We believe these solid growth rates will be driven by a combination of expanded managed care network access, deeper relationships with hospitals (and associated lab pressures in that market), and investments in customer experience, [consumer-initiated testing], and clinical franchises," the analyst said in a Wednesday note. "M&A will likely be additive to growth, as will strong traction in Professional Lab Services deals, which are gaining momentum."

Coldwell also sees potential Medicare reimbursement reform and "favorable" trends in the sector more broadly as catalysts for growth.

"Amid macro and geopolitical uncertainties, we like the safety and growth opportunities that DGX provides with a strong setup for 2025 of stable pricing, core volume growth, heightened deal prospects, no [Protecting Access to Medicare Act], and [laboratory-developed tests] fears long faded," he said.

Shares were marginally higher in the premarket following his call. This year, the stock has risen more than 14%.

— Sean Conlon

Oil prices close lower as U.S. stockpiles rise

Crude oil futures snapped a two-day winning streak to close more than 1% lower on a large build in U.S. stockpiles.

U.S. crude oil fell 97 cents, or 1.35%, to close at $70.77 per barrel, while global benchmark Brent shed $1.08, or 1.42%, to $74.96 per barrel.

Crude stockpiles in the U.S. rose by 5.5 million barrels last week, while gasoline inventories increased by 900,000 barrels, according to the Energy Information Administration.

"With prices already moving lower today, this report does little to encourage buying interest," said Matt Smith, lead oil analyst in the Americas for Kpler.

— Spencer Kimball

UBS is upbeat about these apparel retailers this holiday season

With inflation becoming less of an issue, UBS is optimistic about the holiday shopping season. The firm said perceptions about rising costs are a key factor driving spending decisions. Also, its recent market research suggests consumers are feeling more financially secure than the same time last year and they are less focused on paying down debt or boosting their savings.

"Clothing remains a desired gift," UBS analysts wrote in their holiday outlook, where they picked buy-rated softline stocks such as Deckers, PVH, On Holding and TJX as their favorites.

So far this year, the performance of the group has been a mixed bag. Sneaker maker On Holding, Ugg owner Deckers and Marshalls parent TJX have all outperformed the market year to date, but shares of PVH, which owns the Calvin Klein and Tommy Hilfiger brands, are down 23% since the year began.

"We believe industry sales growth rates over the next few months will surprise to the upside, catalyzing Softline stock prices higher," the analysts said.

— Christina Cheddar Berk

Wednesday's slide threatens gains for Dow and S&P 500 this month

Wednesday's sell-off pulled the Dow and Nasdaq Composite near their flatlines on the month and quarter.

The blue-chip Dow is now up less than 0.1% for both October and the fourth quarter, which also began with the start of the new trading month. The technology-heavy Nasdaq flickered around its flatline for this period during Wednesday's session.

Meanwhile, the S&P 500 is now up just around 0.2% during this timeframe.

Despite this, the three indexes are still on pace for notable gains on the year. The S&P 500 and Nasdaq have each climbed more than 21%, while the Dow has added more than 12%.

— Alex Harring

Morgan Stanley lifts price target on Spotify Technology

Morgan Stanley upped its price target on shares of Spotify Technology, citing the music streaming company's strong product offering and growth potential.

"In 2024, we have begun to see the profit opportunity emerge," wrote Benjamin Swinburne. "We believe there is still a significant opportunity ahead."

The analyst boosted his target on the top stock pick to $430 from $400 a share, reflecting about 11% upside from Tuesday's close. Shares have more than doubled year to date.

Going forward, Swinburne sees opportunities for Spotify to benefit from low global penetration, pricing power and its audiobooks bundle.

"As we look ahead, to 2025 and beyond, we see this model continuing to benefit Spotify and SPOT shares," wrote Swinburne. "New use cases such as video and ticketing combined with leveraging AI can support additional market share gains, higher revenue per customer, and most importantly improved operating leverage."

— Samantha Subin

90% of Dow Industrials, almost 80% of NYSE stocks are retreating Wednesday

Twenty-seven out of 30 stocks in the Dow Jones Industrial Average, or 90%, are falling in late-day trading Wednesday, with only Verizon Communications, Walmart and Johnson & Johnson seeing gains.

More than 79% of the 2,819 stocks traded on the New York Stock Exchange are declining (2,227 down vs. 457 up and 135 unchanged). On the Nasdaq Stock Market, declining stocks account for more than 71% of all issues traded (3,085 down vs. 794 up and 441 unchanged).

New 52-week highs are beating new 52-week lows by 61 to 46 on the NYSE, against new lows besting new highs by 105 to 78 on the Nasdaq.

As a percentage of all shares traded, declining volume on the NYSE comes in at more than 79% of the total against a bit more than 70% on Nasdaq.

— Scott Schnipper

Fed 'Beige Book' indicates 'limited' layoffs, more optimistic outlook

Economic activity over the past seven weeks has been "little changed" as consumers grew more price sensitive and the manufacturing sector retreated, according to the Federal Reserve's periodic economic summary released Wednesday.

The Fed's "Beige Book" report also noted that the dockworkers' strike caused little economic damage, while the violent storm season "heavily affected" the Southeast.

On employment, the document said most of its 12 regions "reported low worker turnover, and layoffs reportedly remained limited."

"Despite elevated uncertainty, contacts were somewhat more optimistic about the longer-term outlook," the report added.

— Jeff Cox

Telehealth stocks tumble as Novo Nordisk renews effort to block Wegovy knockoffs

Shares of Hims & Hers Health tumbled about 9% on Wednesday after Novo Nordisk appealed to the U.S. Food and Drug Administration to bar compounded versions of semaglutide, the active ingredient in Wegovy and Ozempic. The Danish drugmaker is making the case that manufacturing the popular weight loss and diabetes treatment is too complex to be handled safely by compounding pharmacies. The company also said there is a risk patients could overdose on a "superpotent product."

Telehealth companies such as Hims & Hers, along with others that include WW International, Ro and Noom, have helped patients gain access to compounded versions of the drug due to a loophole that allows this practice when a medication is in shortage. Often, these versions of the medication can be less expensive than the brand-name versions.

Still, even with the pullback, Hims & Hers stock has gained more than 140% year to date.

WW stock was also down 8%. However, shares of the Weight Watchers parent have been performing poorly, tumbling 87% year to date, as its core diet program has been hurt by the use of GLP-1 drugs such as Wegovy and Eli Lilly's tirzepatide.

— Christina Cheddar Berk

Dow falls for third straight day

The Dow headed for its third losing session in a row, which would mark the first negative streak of that length since the global market rout in early August.

The blue-chip average was tracking to finish Wednesday's session down 1%. That builds on declines of 0.8% and 0.02% on Monday and Tuesday, respectively.

If the Dow concludes Wednesday's session in the red, it would mark the first three-day losing streak since Aug. 1-5. That period included a day when the 30-stock index tumbled more than 1,000 points.

With these moves, the Dow is poised to finish the week down about 1.9%. That would snap a five-week win streak.

— Alex Harring

Stocks making the biggest moves midday

Check out some of the companies making headlines in midday trading:

• McDonald's — The fast-food stock pulled back more than 5% after the U.S. Centers for Disease Control and Prevention said an E. coli outbreak was tied to the chain's Quarter Pounder burgers. The outbreak led to 10 hospitalizations and one death, the CDC said.
• Walmart — The retail stock advanced almost 1% to reach a fresh all-time high on Wednesday, breaking with the broader market's trend lower. Shares of Walmart have outpaced the S&P 500 in 2024, up 57% compared to the index's nearly 22% jump.
• Boeing — The troubled aerospace stock slipped nearly 3% after reporting its largest quarterly loss since 2020. Boeing reported a loss of more than $6 billion in the third quarter, and it lost more than $4 billion in its commercial airplane sector alone.

Read the full list here.

— Brian Evans

McDonald's shares move off lows

Shares of McDonald's have regained some lost ground as investors digested the news of the E. coli outbreak.

The stock was last trading at $299.92 in late-morning trading, which reflects a decline of nearly 5%. Shares moved as low as $290.83 earlier in the session.

CNBC Pro subscribers can click here for more on how Wall Street is reacting to the news.

— Alex Harring

Walmart climbs to record high

Walmart shares rose more than 0.6% to reach an all-time high on Wednesday, bucking the broader market's negative trend on the day.

Year to date, the stock is up a whopping 57%, putting it on track for its best annual advance since 1999 when it surged 69.8%.

— Fred Imbert

Existing home sales tumble to lowest since 2014

Existing home sales hit their lowest level in nearly 14 years in September even as prices continued to climb, the National Association of Realtors reported Wednesday.

Sales fell to a seasonally adjusted annualized rate of 3.84 million on the month, down 1% from August and 4.2% from a year ago. It was the lowest sales level since October 2010. First-time buyers made up 26% of buyers, tied for the lowest ever.

Prices, though, climbed again, with the median sale price at $404,500, up 3% from a year ago for the 14th consecutive month of an increase.

— Jeff Cox

Former Fed official Esther George cautions on U.S debt and deficit situation

Higher government debt and deficit levels could keep longer-term interest rates elevated, former Kansas City Federal Reserve President Esther George said Thursday.

George said the U.S. fiscal situation "is not a pretty picture" and there is "tremendous pressure" on the Fed for how to respond.

"You have to look at the path of inflation and understand there are upside risks, what the Federal Reserve should be doing to manage that potential risk," George said during an interview on CNBC's "Squawk Box." "That's why I think they will have to be more gradual and cautious in looking at the path of interest rates ahead. It doesn't mean there's not going to be further cuts, but I think the resting point for those interest rates could well be higher than originally imagined."

— Jeff Cox

Stocks open lower on Wednesday

Shortly after 9:30 a.m. ET, the S&P 500 and Nasdaq Composite were down 0.3% and 0.4%, respectively. The Dow Jones Industrial Average lost about 228 points, or 0.5%, to start the session.

— Pia Singh

Citi lowers Microsoft price target ahead of earnings

Citi trimmed its price target on shares of Microsoft, citing a "mixed set-up" into the fiscal first quarter.

Analyst Tyler Radke adjusted the firm's target to $497 from $500 a share, implying 16% upside from Tuesday's close. He cited slowing earnings per share growth and concerns over the company's rapid spending on capital expenditures among some of the recent investor worries.

Radke also views lowered expectations as a potential "clearing event" for the stock.

"We are buyers of the pullback in shares as we expect investor sentiment to turn more positive post-Q ahead of a 2H reacceleration in Azure growth and EPS growth," he wrote.

— Samantha Subin

Coca-Cola shares edge lower despite posting third-quarter beat

Coca-Cola on Wednesday reported better-than-expected quarterly earnings and revenue as higher prices offset sluggish demand for beverages. Shares slipped about 1.8%, however.

The soda maker reported earnings per share of 77 cents, excluding items, while analysts polled by LSEG expected 74 cents a share. Adjusted revenue came out at $11.95 for the period, higher than analysts' forecast of $11.60 billion.

For more on Coca-Cola's third quarter, read here.

— Pia Singh, Amelia Lucas

Stocks making the biggest moves premarket Wednesday

Check out the companies making headlines before the bell:

• McDonald's — Shares fell more than 6% after the U.S. Centers for Disease Control and Prevention said an E. coli outbreak linked to the fast-food company's Quarter Pounder burgers has resulted in the hospitalization of 10 people and one death.
• Starbucks — The coffee chain fell 4.5% after its preliminary fiscal fourth-quarter results showed a decline in sales. Starbucks also suspended its 2025 forecast.
• Boeing — The defense stock slipped 0.6% after its third-quarter results were released. Revenue of $17.84 billion, which the company had preannounced, topped an LSEG estimate of $17.82 billion. Boeing reported a loss of $10.44 per share. Free cash flow was also negative $1.95 billion owing to losses in its commercial airplanes and defense segments.

The full list can be found here.

— Hakyung Kim

Spirit Airlines, Frontier shares jump on report of revived merger talks

Spirit Airlines shares jumped more than 26% in premarket trading after The Wall Street Journal reported that Frontier Airlines is exploring a renewed bid for the budget airline. Frontier shares were up more than 4.2%.

The two carriers have had recent discussions about a possible merger but the talks are at an early stage and a deal may not come to fruition, the WSJ report said, citing people familiar with the matter.

Spirit has been losing money and has failed to report a profit in five out of the past six quarters, raising concerns that it may not be able to manage looming debt maturities. Travel demand remains strong, but that has not translated into airline profits.

— Pia Singh, Reuters

AT&T falls after mixed third-quarter report

AT&T reported mixed results for the third quarter, sending the stock down more than 2%.

The telecommunications giant earned an adjusted 60 cents per share, beating a StreetAccount forecast of 57 cents per share. Revenue, however, came in at $30.2 billion, while analysts anticipated $30.45 billion.

The company also reaffirmed its full-year earnings guidance.

— Fred Imbert

Asia markets mostly rise, Tokyo Metro makes stellar debut in Japan

Asia-Pacific markets mostly rose Tuesday, with investors watching a stellar debut by Japanese subway operator Tokyo Metro.

Shares of Tokyo Metro soared as much as 47% and closed 45% higher.

The company is one of Japan's leading subway operators and the largest in Tokyo, raising 348.6 billion yen, or $2.3 billion, in its initial public offering, the largest IPO in Japan since 2018.

Other economic data out of the region included Singapore's inflation numbers for September, which saw its headline inflation grow 2% year on year, slightly higher than the 1.9% expected by economists polled by Reuters.

— Lim Hui Jie

Stocks making the biggest moves after hours

Check out some of the companies making headlines in extended trading:

• Texas Instruments — The semiconductor company added 2%. Third-quarter results topped analysts' estimates, as Texas Instruments reported earnings of $1.47 per share on revenue of $4.15 billion. Analysts sought earnings of $1.38 per share and revenue of $4.12 billion, per LSEG.
• Seagate Technology — The data storage company slipped 3.6%. Seagate's guidance for $2.3 billion in revenue for the fiscal second quarter was about in line with the Street's estimate for $2.29 billion, per LSEG. The company topped analysts' estimates on the top and bottom lines in the first quarter, however.
• Manhattan Associates — The supply chain software company declined nearly 7%. Manhattan Associates forecast full-year revenue in the range of $1.039 billion to $1.041 billion, while analysts polled by FactSet were expecting $1.04 billion.

Read the full list here.

— Brian Evans

Stock futures open lower

Stock futures were lower on Tuesday, after the S&P 500 closed lower for the second consecutive day.

Futures tied to the Dow Jones Industrial Average pulled back 145 points, or 0.34%. S&P 500 futures were 0.11% lower, while Nasdaq 100 futures ticked down 0.13%.

— Brian Evans