Markets closed sharply lower Monday on profit taking ahead of the two-day Federal Reserve meeting on interest rates, which begins Tuesday. The S&P/TSX composite index fell 56.25 points to 7,014.66.

The Toronto information technology sector fell 2.7%, while the gold index slid 3%.

Tech bellwether Nortel Networks fell 20¢ to $3.82, while Celestica shed 57¢ to $21.58.

The TSX Venture composite index slipped 7.43 points to 1,105.18.

In New York, stocks closed sharply lower as earnings warnings and uncertainty over U.S. interest rates sent investors scurrying to the sidelines.

The Dow Jones industrial average slipped 127.8 points to 9,072.95, according to the latest available data.

The S&P 500 Index gave up 14.04 points to finish at 981.65, while the tech-heavy Nasdaq composite index fell 33.9 points to 1,610.82.

The Canadian dollar finished the day up 0.03 of a cent at US73.56¢ US despite the 0.9% drop in April retail sales. Sales had fallen 0.8%in March. The SARS outbreak in the Toronto area cut Ontario’s sales in April by 2.6%.