In Europe, Cypriot leaders held crisis talks to avert financial meltdown after the country's lawmakers overwhelmingly voted against a controversial EU bank bailout deal on Tuesday. Stocks were under pressure in the last few days as worries over Cyprus and possible contagion to other euro zone nations curbed risk appetite.
(Read More: Don't Count Cyprus Out of the Euro Just Yet: Traders)
European markets finished narrowly mixed as investors watched to see if Russia, rather than Europe, would come to the aid of Cyprus.
Cyprus's finance minister Michael Sarris who is in Moscow for talks with Russia told CNBC that the country was now "looking beyond" extending an existing loan agreement with Russia, prompting speculation that Russia could come to Cyprus's financial aid.
Meanwhile, banks in Cyprus will remain closed until next Tuesday.
Model N surged nearly 30 percent in its market debut on the NYSE after the software maker priced 6.7 million shares at $15.50, above the expected $12.50 to $14.50 range. The company trades under the symbol "MODN."
Apple dipped near $500 a share after Canaccord Genuity cut its target price on the iPhone maker to $600 from $650.
Caterpillar dropped to lead the Dow laggards after the heavy-equipment maker posted a 13 percent decline in global sales to dealers for three months through February. And Deere declined after Wells Fargo cut its rating on the firm to "underperform" to "market perform."
Among earnings, FedEx slumped after the package-delivery company posted lower-than-expected earnings due to weakness in its air express business.
Adobe Systems jumped after the computer software maker lifted its full-year earnings forecast and posted better-than-expected quarterly results. Separately, the company announced its chief technology officer Kevin Lynch will leave to take a job at Apple. At least three brokerages raised their price target on the company.
Lennar rallied after the homebuilder reported earnings that exceeded Wall Street estimates as lower interest rates and rising rents increased home sales.
Oracle and Jabil Circuit are among notable companies scheduled to post earnings after the closing bell. (Read More: A Peek Into Oracle's Future)
Best Buy climbed after Credit Suisse reinstated its coverage on the company with an "outperform" rating.
Zynga plunged after BofA Merrill cut its rating on the social game services company to "neutral" from "buy."
On the economic front, weekly mortgage applications fell for a second week as interest rates climbed to seven-month highs, according to the Mortgage Bankers Association.