Tech stocks were sharply lower Tuesday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) falling 3.1% and the State Street SPDR S&P Semiconductor ETF (XSD) dropping 5.8%.

The Philadelphia Semiconductor index slumped 7%.

In corporate news, Alphabet's (GOOG, GOOGL) Google is supporting a new 12-week incubator for AI startups founded by former Google employees, Bloomberg reported. Its shares were down 0.5%.

Oracle's (ORCL) total workforce fell by about 21,000 employees, or 13%, in fiscal 2026 to 141,000 as of May 31, Reuters reported. Oracle shares were falling 4%.

Varonis Systems (VRNS) is exploring a potential sale after receiving takeover interest from private equity firms including Blackstone (BX), Thoma Bravo and Vista Equity Partners, Bloomberg reported. Varonis shares jumped past 9%.

IBM (IBM) shares gained 5.3% after Morgan Stanley raised its price target to $267 from $225, while keeping its equalweight rating.