Tech stocks were sharply lower late Thursday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) falling 7.3% and the State Street SPDR S&P Semiconductor ETF (XSD) dropping 9.9%.

The Philadelphia Semiconductor index fell 10.4%.

In corporate news, Microsoft (MSFT) declined to extend a contract at a Texas data center with Nscale ahead of the startup's planned initial public offering, Bloomberg reported. Microsoft shares were down 3.7%.