Tech stocks were lower Tuesday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) falling 2.5% and the State Street SPDR S&P Semiconductor ETF (XSD) dropping nearly 6%.
The Philadelphia Semiconductor index fell 5.4%.
In corporate news, Alphabet's (GOOGL) Google has informed suppliers it plans to have its Pixel smartphones, watches and Bluetooth earbuds made outside of China starting next year, Nikkei Asia reported. The move comes amid continuing tension between the US and China, the report said. Alphabet shares were down 0.2%.
Baidu (BIDU) reported lower-than-expected Q2 results on Tuesday amid weakness in its online marketing business, even though it recorded double-digit growth in its core AI-powered operations. Its shares dropped nearly 13%.
Amazon-backed (AMZN) Anthropic saw its annual revenue run rate rise above $65 billion by the end of July, Reuters reported. The figure represents a sharp rise from about $47 billion in May and from roughly $9 billion at year-end 2025, Reuters said. Amazon shares were down 0.2%.
Alibaba (BABA) has reached a deal to sell Lingxi Games for at least $1.5 billion to Trustar Capital, a private equity fund affiliated with China International Trust and Investment, Nikkei Asia reported, citing Bloomberg. Alibaba shares rose 2.4%.