Wall Street falls on 'fiscal cliff,' Europe shares dip on Greece

US stocks fell today and the market could be in line for more weakness as worries about Washington's ability to find a timely solution to the "fiscal cliff" dominate investor thinking in coming weeks.

The Dow Jones industrial average was down 121.41 points, or 0.94 percent, to end at 12,811.32. The Standard & Poor's 500 Index was down 17.02 points, or 1.22 percent, at 1,377.51. The Nasdaq Composite Index was down 41.70 points, or 1.42 percent, to close at 2,895.58.

European equities ended slightly down on following a roller-coaster session marked by brisk volume, with rekindled worries about Greece keeping investors on edge.

The FTSEurofirst 300 index of top European shares closed 0.2 percent lower at 1,097.71 points, unable to bounce back from Wednesday's sell-off.

The Nikkei stock average fell 1.5 percent to a three-week closing low today, as worse-than-expected domestic machinery orders figures increased concerns that Japan's economy was slipping into recession and as strength in the yen weighed on exporters.

The Nikkei dropped to 8,837.15, its lowest close since Oct. 17, breaking below its 25-day moving average at 8,867.44.