The Dow and the S&P 500 fell as a jump in the savings rate indicated that the debt-burdened consumer may not drive the economy out of recession as fast as hoped, and a slide in crude futures prompted investors to sell some energy shares.

The Dow Jones industrial average dropped 56.61 points, or 0.67 percent, to 8,415.79. The Standard & Poor's 500 Index fell 4.38 points, or 0.48 percent, to 915.88. The Nasdaq Composite Index gained 2.12 points, or 0.12 percent, to 1,831.66.

European shares reversed gains and turned negative as US stock futures retreated after a brief rise as US personal income increased more than expected.

The pan-European FTSEurofirst 300 index of top shares lost 0.2 percent at 844.06 points, while major US stock future indexes lost 0.4-0.5 percent.

Japan's Nikkei stock average closed 0.2 percent higher, after stronger-than expected earnings from a U.S. retailer buoyed hopes that the US economic recession may be easing.

The Nikkei gained 23.21 points to 9,819.29 after briefly moving into negative territory, while the broader Topix rose 0.3 percent to 922.68.