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US: Equities decline on Walmart, China stock plunge

US stocks opened sharply lower on Tuesday as poor factory data from China sparked another round of global selloffs.

[NEW YORK] US stocks dropped early Tuesday following disappointing earnings from Walmart Stores and another big drop in the Chinese equity market.

About 25 minutes into trade, the Dow Jones Industrial Average stood at 17,506.37, down 38.81 points (0.22 per cent).

The broad-based S&P 500 lost 4.45 (0.21 per cent) at 2,097.99, while the tech-rich Nasdaq Composite Index shed 17.23 (0.34 per cent) to 5,074.47.

Retail behemoth Walmart, a Dow component, fell 2.3 per cent after slashing its full-year earnings forecast as second-quarter earnings were dented by the strong dollar, higher operating costs and other issues.

The Shanghai index tumbled 6.15 per cent amid worries about the Chinese economy following last week's surprise devaluation of the yuan currency. Equity markets in Japan, Korea and Thailand also fell as jitters about China spread across the region.