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U.S. stocks rise as Apple tumbles

AFP-JIJI, AP

U.S. stocks rose Tuesday on better Chinese economic data and easing concerns about Syria, despite a fall in Apple shares following the launch of two new iPhones.

The Dow Jones industrial average jumped 127.94, or 0.85 percent, to close at 15,191.06. The broad-based Standard & Poor’s 500 increased 12.28, or 0.73 percent, at 1,683.99, while the tech-rich Nasdaq put on 22.84, or 0.62 percent, ending at 3,729.02.

Technology icon Apple, the largest U.S. company by market capitalization, suffered one of the biggest declines among large firms, falling 2.3 percent after CEO Tim Cook and other top officials unveiled two new iPhones.

Some analysts expressed disappointment with the launch. Bank of America said the smartphones would have difficulty competing in the lower-end market “unless Apple is willing to give up subsidy/margin, which it doesn’t typically do.”

Meanwhile, the broader market surged to a second straight day of solid gains. China’s industrial production rose in August at its fastest rate in 17 months, according to official data, providing further evidence of a pickup in the world’s second-largest economy.

Tuesday’s gains came as investors continued to hope that a proposal by Russia to place Syria’s chemical weapons under international control could avert a U.S. military strike.

“The reduced threat of military action appears to be reducing uncertainty and arguably may also lessen the risk that oil could push higher in the coming months,” said Jane Foley, an analyst at Rabobank International. “This all seems to be translating into a better outlook for global growth, which is also supportive of risk appetite.”

In Europe, the FTSE 100 in Britain ended up 0.8 percent, at 6,583, while Germany’s DAX rose 2.1 percent to 8,446 and the CAC-40 in France closed 1.9 percent higher at 4,116.