The Dow fell 300 points as Chevron and Exxon Mobil lagged. The S&P 500 fell 1.1%, while the Nasdaq dropped 1.3%.
Shares of Qualcomm fell 2.9% while Xilinx declined 1.9%. Micron and Lam Research declined 2.2% and 1.8%, respectively.
Apple shares also fell 1.7% after a UBS analyst cut his price target on the iPhone maker to $225 per share from $235.
U.K.-based chip designer Arm Holdings said it suspended business with Huawei to comply with the U.S. blacklisting of the telecom company. Panasonic also said it stopped shipping some smartphone components to Huawei. Vodafone and BT Group, the biggest phone carriers in the U.K., said they are removing Huawei phones from their 5G network plans.