Wall Street sags after Bernanke's comments, European shares close high

US stocks fell today following a two-day rally, after Federal Reserve Chairman Ben Bernanke said the central bank lacks tools to cushion the US economy from the impact of the "fiscal cliff."

The Dow Jones industrial average was down 22.73 points, or 0.18 percent, at 12,773.23. The Standard & Poor's 500 Index was down 1.38 points, or 0.10 percent, at 1,385.51. The Nasdaq Composite Index was down 6.49 points, or 0.22 percent, at 2,909.58.

European equities edged higher today, building on the previous session's strong gains and bolstered by expectations that euro zone finance ministers will approve the next tranche of bailout cash for Greece.

The FTSEurofirst 300 closed up 0.3 percent at 1,094.46 points, with its rebound from a session low of 1,087.08 points also supported by stronger than expected U.S. housing starts data and gains on Wall Street.