Stocks closed lower on Wall Street, led by drops in technology companies and banks. The S&P 500 gave back 0.7%, pulling the index further below the record high it set on Friday. Small-company stocks, which have been beating the rest of the market in recent months, fell more than other sectors. United Airlines tumbled by 8.5% Tuesday after the airline reported a larger first-quarter loss than expected and suggested that key business and international travel won't recover significantly until next year, the AP reports. The S&P 500 fell 28.32 points to 4,134.94. The Dow Jones Industrial Average fell 256.33 points, or 0.8%, to 33,821.30. The Nasdaq fell 128.50 points, or 0.9%, to 13,786.27. The Russell 2000 index of smaller companies fell 43.79 points, or 2% to 2,188.21.
After United reported a first-quarter loss of $1.36 billion, CEO Scott Kirby told investors that business would gradually improve as restrictions were lifted but he didn't expect business travel to fully bounce back until January. Technology stocks accounted for the biggest share of the decline in stocks, putting more pressure on the broader market. Apple fell 1.7%. Investors are focusing on company earnings reports that are steadily coming out this week. On average, analysts expect profits across the S&P 500 to be up 24% from a year earlier, according to FactSet. Kansas City Southern jumped 16.4% after another Canadian railway company offered to buy the railroad for $33.7 billion, far higher than a $25 billion offer made by Canadian Pacific last month, per the AP.
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