Wall St drops as caution rises before big tech earnings, Fed

Shares of tech and internet companies have run up recently and last week regained leadership of the market.

"Expectations are so high. They're going to have good numbers ... but we are expecting much more or maybe they will talk down the second half of the year," said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago. Adding to the cautious tone is the outlook for U.S.-listed Chinese stocks, he said. The shares extended losses as fears over more regulations in the mainland persisted.

Caution was also high as the Fed began its two-day meeting, with investors looking for signs on when it intends to begin reining in its massive stimulus program.

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