Stock markets today: Dow futures lead S&P 500, Nasdaq lower as Treasury yields rise

The Dow led U.S. stock futures lower on Wednesday as investors braced for a busy day of earnings highlighted by Boeing ( BA ) and Tesla ( TSLA ) on rate cut doubts.

Dow Jones Industrial Average futures (YM=F) fell 0.4%, while S&P 500 futures (ES=F) fell 0.2% after the benchmark booked back-to-back losses for the first time since September. The tech-heavy Nasdaq 100 (NQ=F) contracted about 0.4%.

Stocks' rally stalled as investors debated how quickly the Federal Reserve would cut interest rates next year. Frustration over the prospect of longer rate hikes has dragged down bond prices in recent days, sending the 10-year Treasury yield (^TNX) to levels not seen since July. Yields rose slightly to around 4.3% on Wednesday.

Read more: What Fed Rate Cuts Mean for Bank Accounts, CDs, Loans and Credit Cards

Meanwhile, results from Boeing and Tesla are awaited as both struggle with headwinds. The planemaker is expected to post a big loss in its quarterly report hours later, on the same day it will find out whether striking factory workers have voted to accept a pay deal.

Tesla's earnings are in high focus after the market close amid questions about the EV maker's long-awaited cheaper EV, robotaxi specifications and its AI shift. More broadly, Wall Street is divinely looking to see whether big tech megacaps will fuel a stock rally — and what the AI ​​arms race means for their performance.

Coca-Cola ( KO ), AT&T ( T ), and IBM ( IBM ) are the other top-tier names on the packed earnings docket, with more than a quarter reported in the bag.

Investors are wary of surprises after Starbucks (SBUX) shock sales decline and guidance withdrawal The coffee chain's share in the premarket fell about 5%.

Elsewhere on the corporate front, McDonald's ( MCD ) stock plunged as much as 10% after the company's quarterly Pounder burger was officially announced in some states as an E. coli outbreaks were linked. Shares recovered some losses early Wednesday, down about 7%.