U.S. equities closed lower on Thursday as financials lagged, while social media company Snap had a strong performance in its initial public offering.
The Dow Jones industrial average fell about 100 points, with Caterpillar contributing the most losses. Caterpillar's stock declined more than 4 percent after law enforcement officials searched their offices.
Art Hogan, chief market strategist at Wunderlich Securities, said he is not worried about this decline. "I'd be much more concerned if, after being up 300 points yesterday, we were up 100 points today."
The S&P 500 declined 0.6 percent, with financials declining more than 1 percent. The Nasdaq composite fell 0.7 percent.
"It's only normal. We're at record levels and at some point, it's natural to see some profit taking," said Peter Cardillo, chief market economist at First Standard Financial.
Snap — the parent company for social media platform Snapchat — saw its stock risemore than 40 percent, pushing it well above the $17 a share it priced its IPO. Investors eagerly awaited the IPO as they looked for clues on the health of the technology IPO market.
"Given all the negatives associated with this company, it's going to be one of the more interesting stories we'll see in the next few days," said Maris Ogg, president at Tower Bridge Advisors.