Apple fell $15.83, or 3.2 percent, to $485.92, closing below $500 for the first time in almost a year. Apple slumped 3.6 percent Monday on concern that demand for its iPhone 5 is slowing. Nomura analysts today lowered their target price for the stock to $530 from $660 and cut their estimates for iPhone sales this year.
Both the S&P 500 and the Dow are up on the year, having surged in the first week of January after lawmakers reached a last-minute budget deal to stop the economy going over the "cliff." The agreement prevented a series of tax increases and spending cuts that could have pushed the U.S. economy back into recession, according to economists.
Optimism about the outlook for global growth has also boosted stocks.
The S&P 500 is up 3.2 percent this year. The 30-member Dow is up 3.3 percent since the start of 2013.
The yield on the 10-year Treasury note, which moves inversely to its price, was little changed at 1.84 percent.
Among other stocks making big moves;
— Dell gained 88 cents, or 7.2 percent, to $13.17, rising for a second day on a report that the computer maker is in talks with private equity firms about a buyout.
— Facebook fell 85 cents, or 2.7 percent, to $30.10, paring its gains for the year to 13 percent, after the company unveiled a new feature Tuesday that lets users search their social connections for information about people, interests, photos and places.
— Lululemon Athletica, a maker of yoga apparel, dropped $2.83, or 3.9 percent, to $69.47 after its revenue forecast fell short of analysts' estimates.
— Given Imaging Ltd. fell $2.10, or 11.5 percent, to $16.10 after the medical equipment company said it was no longer considering a sale. Also one of its largest shareholders plans to sell its stake.
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