Wall Street slips, as banks lift European shares

US stocks fell on Tuesday after the S&P 500 hit its highest level in four years as the benchmark index faced technical resistance and traders cashed in recent gains.

The S&P 500 index hit 1,426.68, its highest intraday rise since May 2008. Volume has been light, as expected in August, and only three of the past 12 sessions have seen moves of 0.25 percent or more by the S&P.

The Dow Jones industrial average fell 68.06 points, or 0.51 percent, to 13,203.58. The S&P 500 Index dropped 4.96 points, or 0.35 percent, to 1,413.17. The Nasdaq Composite lost 8.95 points, or 0.29 percent, to 3,067.26.

European shares rose in thin trade, boosted by renewed speculation the European Central Bank would act to rein in the sovereign debt crisis in the euro zone.The FTSEurofirst 300 rose 0.4 percent to 1,109.55, having traded 62 percent of its 90-day volume average.

The Euro STOXX 50 index rose 1 percent to 2,490.27 points and was up around 15 percent since Draghi's comments on July 26.

In Asia, Nikkei share average retreated from a three-month high on Tuesday on creeping doubts over the European Central Bank's plan to tackle the region's debt crisis, although investors buying defensive stocks offered some support to the market.

The Nikkei slipped 0.2 percent to 9,156.92 but held above its 26-week moving average at 9,149.50. The broader Topix added 0.1 percent to 765.26 in light trade.