01:33 PM EDT, 09/02/2025 (MT Newswires) -- Tech stocks retreated Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) falling 1.7% and the SPDR S&P Semiconductor ETF (XSD) dropping 2.8%.

The Philadelphia Semiconductor index slumped 2.2%.

In corporate news, The US General Services Administration said Tuesday it has reached a new agreement with Microsoft ( MSFT ) through which the tech giant will provide discounts for its suite of cloud services that could provide $3.1 billion in savings in year one. Microsoft ( MSFT ) shares fell 1%.

Nvidia ( NVDA ) shares fell 2.9% amid reports that Alibaba ( BABA ) is developing its own integrated circuits to replace Nvidia's ( NVDA ) H20 chip. Alibaba ( BABA ) shares gained 1.7%.

Taiwan Semiconductor Manufacturing's ( TSM ) waiver to freely ship essential inputs to its main Chinese chipmaking facility has been pulled by the US, Bloomberg reported, citing a company statement. TSM shares were down 1.4%.