Cummins tumbled after the engine maker slashed its full-year sales forecast, hurt by weaker U.S. orders from truck and power generation customers, but the company also raised its dividend. Caterpillar also slumped following the news.

Applied Materials tumbled after the chipmaker said it expects third-quarter earnings to be in the lower half of its previous outlook. The company also cut its fiscal 2012 sales outlook on weaker-than-expected demand.

This comes a day after AMD cut its sales outlook , hurt by disappointing sales in China and Europe. In addition, at least eight brokerages lowered their price target on the company.

Other chipmakers including Micron and Sandisk also declined.

Intel will be acquiring a 15 percent stake in microchip maker ASML for $4 billion and fund the Dutch company's research into next-generation chipmaking technology.

Research In Motion shareholders re-elected the company's board of directors at its annual meeting. The embattled BlackBerry maker is down almost 50 percent year-to-date.

Google is close to paying $22.5 million to settle charges that it bypassed the privacy settings of customers using Apple's Safari browser, according to reports. Meanwhile, BMO raised its price target on the iPad maker to $700 from $695.