Euro zone worries drag global stocks down

US stocks closed lower in a choppy session on Wednesday, with the S&P 500 logging its fourth straight decline as investors worried about Greece's future as a member of the euro zone.

Early US gains were erased after the European Central Bank said it had stopped providing liquidity to some Greek banks that had not been recapitalized. The ECB's move caused some market confusion, adding to volatility as traders have a quick trigger finger when it comes to news about Greece.

The Dow Jones industrial average dropped 33.45 points, or 0.26 percent, to 12,598.55. The Standard & Poor's 500 Index dropped 5.86 points, or 0.44 percent, to 1,324.80. The Nasdaq Composite Index dropped 19.72 points, or 0.68 percent, to 2,874.04.

Banks dragged Europe's top shares lower in choppy trade as investors worried over the stability of the euro zone lacked confidence to buy risky assets.

The FTSEurofirst closed down 4.89 points, or 0.5 percent, at 992.81, falling for a third consecutive trading day and hovering around 4-1/2 months lows. The index is down more than 10 percent from its 2012 peak.

In Asia, the Nikkei share average slid 1 percent, as data showing flat bank lending in China chilled already tepid sentiment for risk assets although the benchmark managed to end a whisker above a key support level. The broader Topix index dropped 1.2 percent to 738.88, with volume moderate at 1.98 billion shares traded.