Meanwhile, BlackBerry plunged nearly 20 percent after the troubled smartphone maker announced preliminary second-quarter results that disappointed current estimates. In addition, the company said it will slash approximately 4,500 jobs, or nearly 40 percent of its workforce, as part of its massive restructuring plan.
Stocks opened lower after St. Louis Federal Reserve Bank President James Bullard said the central bank could start winding down its $85-billion monthly bond purchase program during its October meeting.
"This was a close decision here in September," Bullard said in an interview with Bloomberg, emphasizing the role that economic data has played and will continue to play in Fed decisions.
The dollar rose to a one-week high against the yen following his comments.
Separately, Bullard said low readings on inflation means that the Fed can be patient on deciding when to scale back its pace of asset purchases.
"While I expect inflation to rise during the coming quarters, I want to see evidence of such an increase before endorsing less accommodative policy action by the FOMC," Bullard said at the New York Association for Business Economics.
Kansas City Fed President Esther George, the lone dissenter on the Fed's Open Market Committee, said the Fed created confusion in the market and it risks credibility by delaying the reduction of its bond buying program.
(Read more: No Fed taper this year, says former Bush advisor)
Lazard Capital's Hogan also said two "hurdles" still remain for investors in September—the German election and Washington's ongoing budget debate.
"Those two could prove to be formidable and not bullish for stocks if they move in the wrong direction," he explained. "So as we head into the weekend, investors are taking money off the table."
Meanwhile, the U.S. House of Representatives passed a bill that would keep the government open to Dec. 15 and also eliminate funding for President Barack Obama's "Obamacare."