Wall Street drops after Fed minutes; Europe shares dip as Spain hit by deficit concerns

US stocks fell on Tuesday, with the S&P 500 retreating from four-year highs after the US Federal Reserve said it was less inclined to provide more economic stimulus.

The Dow Jones industrial average fell 64.94 points, or 0.49 percent, to end at 13,199.55. The Standard & Poor's 500 Index was down 5.66 points, or 0.40 percent, at 1,413.38, retreating from a four-year high. The Nasdaq Composite Index was down 6.13 points, or 0.20 percent, at 3,113.57.

European blue chip shares fell, paring the previous session's sharp gains, as Spain's economic woes weighed on banks and investors were cautious before the release of minutes from the US Federal Reserve's latest meeting.

Spain's IBEX shed 2.7 percent, underperforming the pan-European FTSEurofirst 300 which fell 1.1 percent to 1,072.87 points.

Japan's Nikkei share average fell but remained above 10,000, with the yen's climb to a three-week high against the dollar prompting investors to lock in profits on blue-chip exporters that have logged sharp gains since January.

The Nikkei index closed 0.6 percent lower at 10,050.39, further retreating from a one-year high near 10,255 hit last week and down for six of the last 10 sessions, raising concerns that this year's rally is running out of steam.

The broader Topix index lost 0.6 percent to 851.02.