Problems for Apple?

Shares of Apple Inc fell as much as 2 percent on Tuesday after technology website Gizmodo reported a "rumour" that Chief Executive Steve Jobs' health was declining.

A spokesman for Apple declined to comment on the rumour.

When asked about Jobs' health, the spokesman said "if ever Steve or the board of directors decided that he was no longer capable of doing his job as CEO of Apple, I'm sure they will let you know."

Gizmodo quoted a "solid source" which it did not identify, as saying that Jobs' "rapidly declining" health was the real reason behind his decision to cancel a keynote speech at next week's MacWorld conference. It title the report "rumour".

Apple shares have been trading up 1.5 percent at $87.92 before moving sharply lower. The stock then recovered to trade down about half a percent at $86.15 by mid-afternoon.