Microchip's shares fell 10.5 percent, the biggest decliner on the S&P, after it forecast disappointing second-quarter revenue.
The S&P 500 and Dow ended down slightly on Thursday as gains in Apple AAPL.O and Amazon AMZN.O were offset by losses in energy and financial shares.
The dollar index rose 0.44 percent, with the euro down 0.52 percent to $1.1550.More news: New Study Finds Men Who Wear Boxers Have Higher, Healthier Sperm Count
The number of Americans filing for unemployment benefits unexpectedly fell last week, suggesting that a strong economy was helping the labor market counter ongoing trade tensions.
Seven of the 11 major S&P sectors were higher, with the materials sector leading the gains as aluminum prices rose. Tribune shares rose 2.9 percent.
Chip stocks fell after Morgan Stanley downgraded the USA semiconductor industry, saying upside to estimates is hard to come by.More news: Nasa spacecraft heads to sun for closest look yet
Rite Aid fell 9.5 percent and was the most actively traded stock after the drug store chain and USA grocer Albertsons Cos agreed to terminate their merger agreement. Micron (MU.O), Applied Materials (AMAT.O) and ON Semiconductor (ON.O) fell between 1.8 percent and 2.4 percent.
On the TSX 78 issues advanced and 162 declined as a 0.5-to-1 ratio favoured decliners.
Declining issues outnumbered advancing ones on the NYSE by a 2.12-to-1 ratio; on Nasdaq, a 1.47-to-1 ratio favored decliners.
The S&P index recorded 24 new 52-week highs and 2 new lows, while the Nasdaq recorded 66 new highs and 40 new lows.More news: The Nintendo Switch Paid Online Services Start The Second Half Of September