Apple finished slightly lower in volatile trading after the tech giant unveiled new versions of its full-sized iPad, called iPad Air, and iPad Mini in time for the holiday season. The tech giant also said a new version of its computer operating system, OS X Mavericks, would be available for existing customers to download free immediately.
(Read more: Apple reveals new iPad Air)
And adding fuel to the tablet war fire, competitors Nokia and Microsoft each unveiled tablet devices, ahead of Apple's event. Nokia took the wraps off its first-ever tablet, the Lumia 2520 in Abu Dhabi. And Microsoft started selling its new Surface 2 tablet in the U.S. starting midnight.
(Read more: Apple's iPad not for you? Other tablet options)
Netflix finished sharply lower, reversing an initial spike at the open. On Monday, the online video company posted blowout earnings after the market close. At least 10 brokerages boosted their price targets on the firm. The stock has almost quadrupled since the beginning of the year.
Meanwhile, Netflix CEO Reed Hastings commented that the company's stock is caught in some "investor-fueled euphoria."
"When it bounced up this morning, it [was up] over 300 percent year-to-date and that's a stock that begs to be sold," said Dan Fitzpatrick, president of Stockmarketmentor.com. "The weekly chart shows the stock extended 61 percent above the 200-day moving average...It was a typical 'buy the anticipation, sell the event.' And if you think about it from a trading standpoint, it gapped up so much this morning, why wouldn't you take those profits? We have a situation where a rising tide lifts all boats, but when that tide stops rising, you're going to see a real pullback as well. Nothing wrong with Netflix."
Other momentum stocks such as Priceline, Pandora and Facebook also turned lower around the same time, but recovered throughout the afternoon.
On the economic front, U.S. employers added just 148,000 workers in September, according to the Labor Department, missing expectations for a gain of 180,000 new jobs. Still, the unemployment rate dropping to 7.2 percent, the lowest level since November 2008.
The report, originally scheduled for release on Oct. 4, was delayed more than two weeks due to the government shutdown. Most market-watchers now expect the central bank to continue its $85 billion a month bond-buying program until well into 2014.
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