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.

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 rose after another Canadian railway company made an offer for the railroad.