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Wall St dips as Apple adds to fears of weakening demand

US stocks were lower on Tuesday morning, dragged down by Apple, as investors anxious about China’s economic health and braced for an interest rate hike by the Federal Reserve next month.

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Still, the Dow Jones industrial average rose 0.16 percent to finish the day at 17,758.21 points. The drop appeared to be less intense than Monday’s selloff, but investors continued to sell in anticipation of a US rate hike in December.

The USA markets closed lower on Monday, with their sharpest decline in six weeks, marking a fourth consecutive session of losses for the S&P 500.

Markets have been subdued since Friday, when an unexpectedly strong October jobs report cemented expectations the U.S. Federal Reserve is likely to raise interest rates, which have been close to zero since the 2008 financial crisis.

The consumer discretionary sector.SPLRCD was the worst-hit among the S&P sectors, falling 1.5 percent, weighed down by Priceline.

On the USA economic front, the Labor Department released a report before the start of trading showing that import prices fell by slightly less than expected in October.

The Shanghai Composite Index slipped 0.2 percent to 3,640.49 and South Korea’s Kospi lost 1.4 percent to 1,996.59. The materials index fell 1.03 percent. Yields on other Treasuries, including the two-year and three-year notes, also rose.

“This reflects a number of factors, but can mostly be attributed to weak global demand and excess supply”.

McDonald’s added just 0.3 percent after management told an investor meeting that its turnaround plan, including refranchising thousands of restaurants, was on track but that it would not spin off its real estate holdings into a separate trust. Brent crude, used to price worldwide oils, declined 23 cents to $47.19 a barrel in London.

The report said wholesale inventories climbed by 0.5 percent in September after rising by an upwardly revised 0.3 percent in August.

Despite the dollar at a seven-month high, December gold futures eked out a small gain, closing at $1,088.50 an ounce – an increase of 40 cents, or 0.03 %.

This is because, as pointed out by fellow technician MarketWatch’s Michael Ashbaugh, historically higher interest rates coupled with a strong US dollar have been a major headwind for stocks.

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Vodafone Group plc (LON:VOD) boosted its full-year earnings forecast on Tuesday, causing U.S.-listed shares in the world’s No. 2 mobile operator to rise 4.15 percent to $33.66.

The Chicago Board Options Exchange Volatility Index jumped 14 per cent its biggest increase since September