Tech stocks were sharply lower Tuesday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) falling 3.5% and the State Street SPDR S&P Semiconductor ETF (XSD) dropping 6%.

The Philadelphia Semiconductor index slumped 4.7%.

In sector news, OpenAI has confidentially filed for a potential initial public offering in the US, joining a series of mega-cap listings that could mark the largest capital-raising cycle on record. Last week, AI chatbot Claude maker Anthropic confidentially filed to go public in the US. Elon Musk-led SpaceX is looking to raise a record-breaking $75 billion in its IPO, and could be valued at $1.75 trillion, Reuters reported earlier this month.

In corporate news, Apple (AAPL) on Monday unveiled major software updates at its Worldwide Developers Conference, including Siri AI and the next generation of Apple Intelligence. Separately, Apple said Tuesday users in the EU will not have access to Siri AI on iOS 27 and iPadOS 27 when the software launches later this year because of requirements under the bloc's Digital Markets Act. Apple shares fell 3.8%.

SailPoint (SAIL) on Tuesday issued a fiscal Q2 revenue outlook indicating a sequential growth slowdown, while the cybersecurity company left its full-year profit guidance unchanged. Its shares dropped 11%.

CoreWeave (CRWV) will hold calls Tuesday with high-yield investors in Europe about potential dollar and euro bond sales, Bloomberg reported. CoreWeave shares dropped 5.4%.