U.S. stock indices declined after the People's Bank of China depreciated the yuan on Tuesday. Concerns about demand for the iPhone in the world's second-biggest economy weighed on Apple Inc driving its shares 5.2% lower and making it the biggest loser in all three major indices.

The Dow Jones industrial average fell 212.33 points, or 1.21%, to 17,402.84. The S&P 500 index lost 20.11 points, or 0.96%, to 2,084.07. The Nasdaq Composite tumbled 65.01 points, or 1.27%, to 5,036.79.

U.S. National Federation of Independent Business reported on Tuesday that the index of small business optimism rose by 1.3 point to 95.4 in July, while economists had expected the index to rise to 95.5. Seven out of ten sub-indexes improved.

This morning in Asia Hong Kong Hang Seng dropped 1.99%, or 486.57 points, to 24,011.64. China Shanghai Composite Index fell 0.25%, or 9.63 points, to 3,918.28. The Nikkei lost 1.48%, or 306.22 points, to 20,414.53.

Asian stocks traded lower amid the unexpected yuan devaluation. Today People's Bank of China cut yuan's exchange rate further by 1.6%. Broad declines in U.S. equities put additional pressure on Chinese indices.