US blue-chip stocks declined in late-afternoon trade yesterday as energy stocks fell with oil prices and Wall Street worried about escalating tensions between nuclear powers India and Pakistan. But technology stocks inched higher after three declining sessions.

"The India and Pakistan situation weighs on everything because any bit of uncertainty makes traders say 'I'm not taking a position,'" said Mr Andrew Abrams, a fund manager with CWH Associates. "The tech sector doesn't look any better, but it's been beaten up an awful lot."

Semiconductor stocks remained lower, even as the tech sector cut losses, after Genesis Microchip, a maker of microchips for flat panel displays and digital televisions, said it may face heavier-than-expected pricing pressure and loss of market share.

Genesis shares tumbled $6.66, or more than 28 per cent, to $16.70 after the semiconductor company said industry data suggested it will be difficult to raise prices and boost profits.

The broader Philadelphia Stock Exchange semiconductor sector index fell 0.51 per cent in its ninth losing day in a row.