CORRECTED - US STOCKS-Wall St drops as McDonald's weighs

(Corrects reason for McDonald's shares falling and removes reference to warning on profit impact of forex hit)

* McDonald's shares fall on slowing May sales

* Investors eye rising interest rates

* Indexes down: S&P 500 1.2 pct; Dow 1.2, Nasdaq 1.6

* For up-to-the-minute market news click [STXNEWS/US] (Updates to mid-morning)

By Edward Krudy

NEW YORK, June 8 (Reuters) - U.S. stocks slid on Monday after McDonald's Corp posted lighter-than-expected May sales and investors worried that rising interest rates may hamper a recovery.

With the market rallying for three months, investors are increasingly looking for more concrete evidence of an improving economy to sustain the advance.

Additionally, a continued rise in bond yields could be another headwind for stocks since rising interest rates may boost borrowing costs for consumers and businesses.