The Dow Jones industrial average fell 0.3 percent, the broad S&P 500 index fell 0.5 percent and the tech-heavy Nasdaq Composite index fell 1.2 percent.
After several chip giants tumbled on the South Korean stock market, it was once again time for an AI frenzy in New York, according to CNBC.
Semiconductor companies Micron, AMD, KLA and Marvell plunged between 4.6 and 7.5 percent.
The market is also weighed down by new geopolitical concerns after three tankers were hit by projectiles in or near the Strait of Hormuz.
On Tuesday evening, Swedish time, the United States withdrew an exemption that had temporarily lifted oil sanctions against Iran since mid-June.
This caused the futures price of North Sea oil, which had already risen slightly, to surge to $75.67 per barrel - a 5.1 percent increase on the day. US WTI oil rose almost as much.
