Wall Street Falls As Apple Drags Down Tech Stocks

US stocks were lower in late morning trading on Tuesday as Apple dragged down technology stocks after European Union antitrust regulators ordered the company to pay about $14.5 billion in back taxes to the Irish government.

The S&P 500 technology index fell 0.37 per cent, the biggest decline in nearly a week, hurt by a 0.9 per cent drop in Apple.

The stock was the biggest drag on the three major US stock indices.

Oil prices dropped more than 1.7 per cent as the dollar index jumped 0.42 per cent after a report showed that the consumer confidence index rose to 101.1, handily beating expectations of 97.

However, the markets are still focused on the Federal Reserve and its path to interest rates after Fed Chair Janet Yellen said last week that the case for a rate hike was strengthening.

"Equities are likely to turn sideways as investors enter a wait-and-see mode until greater evidence of economic growth comes forth," said Terry Sandven, chief equities strategist at US Bank Wealth Management in Minneapolis.

Fed Vice Chairman Stanley Fischer, in an interview with Bloomberg TV on Tuesday, said the US job market is close to full strength and the pace of interest rate hikes will depend on how well the economy is doing.

Investors are awaiting a report on monthly payrolls data due on Friday to assess whether it would support the hawkish tone that Fed officials have taken.

At 11:09 a.m. ET, the Dow Jones industrial average was down 55.61 points, or 0.3 per cent, at 18,447.38. The S&P 500 was down 5.22 points, or 0.24 percent, at 2,175.16. The Nasdaq Composite was down 12.16 points, or 0.23 percent, at 5,220.17.

Eight of the 10 major S&P 500 indices were lower, with the utilities falling the most by 0.69 per cent.

Hershey dropped 10.6 per cent to $99.92 after Mondelez said on Monday it was no longer pursuing an acquisition.

Mondelez rose 4.2 per cent and provided the biggest boost to the S&P and the Nasdaq.

Abercrombie & Fitch plunged 20 percent after the apparel retailer said it no longer expects comparable sales to improve this year.

Advancing issues outnumbered decliners on the NYSE by 1,414 to 1,410. On the Nasdaq, 1,481 issues rose and 1,151 fell.

The S&P 500 index showed 25 new 52-week highs and no new lows, while the Nasdaq recorded 93 new highs and 10 new lows.