A number of semiconductor equipment stocks were falling and pulling down the broader technology market Friday morning after Goldman Sachs downgraded the sector in a research note.

Goldman cut the sector to market weight from market overweight, citing a recent run-up in the shares and the difficulty in predicting the vigor of near-term demand. Goldman noted that semiconductor makers have recently added capacity, which caused a spike in equipment orders, but added foundries could hold off buying more equipment as they put the capacity on line.

Goldman took the following companies off its recommended list and classified them as market outperform: KLA-Tencor ( KLAC - Get Report), Applied Materials ( AMAT - Get Report), ATMI ( ATMI) and Teradyne ( TER - Get Report). It lowered Axcelis ( ACLS - Get Report), Lam Research ( LRCX) and Novellus ( NVLS) to market perform from market outperform.

In the Instinet premarket session, Novellus was down $2.74, or 5.7%, to $45.10, while Applied Materials was down $1.45, or 5.7%, to $24.12.