Wall Street snaps winning streak on Europe uncertainty

US stocks fell on Monday but staged a late comeback after fears of a looming Greek debt default diminished on news of a possible deal to advance new bailout funds to Greece.

Stocks spent most the session sharply lower after European leaders disappointed investors by failing to come up with any new solutions to the euro zone's sovereign debt crisis over the weekend.

The Dow Jones industrial average dropped 108.08 points, or 0.94 percent, to 11,401.01. The Standard & Poor's 500 Index lost 11.92 points, or 0.98 percent, to 1,204.09. The Nasdaq Composite Index edged down 9.48 points, or 0.36 percent, to 2,612.83.

European stocks tumbled and snapped their four-day rally after data showed US employment growth ground to a halt in August, rekindling fears that the world's largest economy is slipping into recession.

The FTSEurofirst 300 index of top European shares ended 2.5 percent lower at 948.63 points, while German Bund futures FGBLc1 rallied to record highs.