CORRECTED - US STOCKS-Wall St slides on McDonald's, rate fears

(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

* S&P 500 and Dow off 1.4 pct, Nasdaq down 1.6 pct

* For up-to-the-minute market news click [STXNEWS/US] (Updates to midday; changes byline)

By Tenzin Pema

NEW YORK, June 8 (Reuters) - U.S. stocks fell on Monday after McDonald's Corp (MCD.N) posted lighter-than-expected May sales and investors worried that the ongoing rise in interest rates could 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.

The Dow Jones industrial average .DJI dropped 123.41 points, or 1.41 percent, to 8,639.72. The Standard & Poor's 500 Index .SPX fell 12.79 points, or 1.36 percent, to 927.30. The Nasdaq Composite Index .IXIC slid 29.68 points, or 1.60 percent, to 1,819.74.