Tech stocks slumped Thursday afternoon with the State Street Technology Select Sector SPDR ETF (XLK) falling 2.3% and the State Street SPDR S&P Semiconductor ETF (XSD) dropping 2.9%.

The Philadelphia Semiconductor Index shed 1.6%.

In corporate news, Cisco Systems (CSCO) shares fell 12% after the company projected its adjusted gross margin to drop in fiscal Q3 from Q2 amid rising memory prices.

Apple (AAPL) received a letter from the US Federal Trade Commission over the political leanings of news outlets included in its news app. Citing a study by a conservative watchdog, FTC Chair Andrew Ferguson questioned whether Apple was excluding right-wing news outlets while asking for "corrective action," according to the letter posted by Ferguson on the social media platform X late Wednesday. Apple shares fell 5%.

AppLovin (APP) had its price target cut by Wall Street analysts including Citigroup, Morgan Stanley, Wells Fargo, Goldman Sachs, and JPMorgan a day after the company reported Q4 results. The stock tumbled 18%.