Markets closed lower on Thursday as investors locked in profits in response to increased worries about the health of the U.S. economy. The S&P/TSX composite index fell 45.75 points to 7,071.54.

Investors are also worried that upcoming earnings reports won’t meet expectations.

The TSX technology group finished down 1.45%, weighed down by profit-taking and disappointment about Yahoo results. Yahoo doubled profits over the same period last year but its results fell short of lofty Wall Street forecasts.

The telecoms, industrials and healthcare groups all fell more than 1%.

Among individual stocks, Research In Motion closed down 65¢ at $31.35, while conglomerate Onex fell 33 ¢ to $15.55.

Gold issues rose 0.03%, as bullion prices recovered after the European Central Bank left interest rates unchanged.

The junior TSX Venture composite index edged up 2.95 points to 1,118.09.

In New York, stocks fell sharply on Thursday, after lacklustre economic data stoked investor fear that the economy may be faltering.

A bleak unemployment report hurt investor sentiment. The government said the number of jobless Americans receiving benefits hit its highest point in more than 20 years in June.

The failure by Yahoo to beat consensus earnings didn’t help.

The Dow Jones industrial average closed down 120.17 points, ] at 9,036.04. The S&P 500 Index shed 13.54 points to 988.67. The tech-heavy Nasdaq composite index dropped 31.77 points to 1,715.69.

The Canadian dollar extended its string of losses to six days, sliding 0.35 of a cent against the U.S. greenback. The loonie closed at US72.39 cents.

Many analysts are speculating the Bank of Canada might cut interest rates to bolster the economy when it meets next Tuesday, a move that would reduce the attractiveness of the Canadian dollar.