By Benjamin Pimentel

The technology sector sank Monday in a broader market sell-off as investors reacted to declines in Chinese stocks.

The Nasdaq Composite Index (RIXF) fell nearly 20 points, or about 1%, to close at 2,009, pummeled by losses in shares of Amazon.com Inc. (AMZN), Cisco Systems Inc. (CSCO), Apple Inc. (AAPL) and Advanced Micro Devices Inc. (AMD)

The Morgan Stanley High Tech 35 Index (MSH) dropped 1.2%, while the Philadelphia Semiconductor Index (SOX) retreated 1.6%.

Aside from AMD, other major chip makers were in the red, including Nvidia Corp. (NVDA) and Texas Instruments Inc. (TXN) However, Intel Corp. (INTC) eked a fractional gain.

Early Monday, the Semiconductor Industry Association reported that global chip sales fell 18% year over year in July, but were up 5.3% from June.

"The fifth consecutive month of sequential increases in semiconductor sales reflects improving demand in the consumer sector," SIA President George Scalise said in a statement.

The Dow Jones Industrial Average (DJI) was down 48 points, with investors reacted to declines in China's stock market.