The Dow ended lower Monday, giving up earlier gains, as the euro retreated after Moody's downgraded its debt rating on Greece to junk status.
Stocks had been rallying for most of the day, led by techs and industrials, as strong euro-zone industrial data buoyed hopes for the global economic recovery.
The Dow Jones Industrial Average lost about 20 points, or 0.2 percent, after being up as much as 100 points earlier.
Materials and financials were the biggest decliners, with JPMorgan , DuPont and Bank of America leading Dow decliners.
Utilities and consumer staples were the day's best performers.
The S&P 500also finished lower, while the Nasdaq ended slightly higher. The CBOE volatility index, widely considered the best gauge of fear in the market, was around 28 at the closing bell.
Moody's downgraded its debt rating on Greece by four notches, putting it in junk territory.
Peter Boockvar, equity strategist at Miller, Tabak and Co. in New York, called the move by Moody's "well behind the curve."
"The citizens [of Greece] have yet to embrace the idea of scaling back," Todd Schoenberger, managing director of LandColt Trading, explained.
Earlier, stocks rallied following news that showed euro-zone industrial output in April surged year-on-yearmore than in any month in almost two decades, bolstering the view that economic recovery could be gathering pace.
The euro retreated as the Greek downgrade curbed an earlier burst of short-covering.
Oil rose more than $1, settling at $75.12 a barrel. Gold fell more than $5, settling at $1,223.30 an ounce.
Home Depot shares fell slightly despite Citigroup raising its view on the home improvement retailer. Citi said Home Depot's earnings should improve due to improved expense leverage, share repurchases and higher margins.
BP shares tumbled more than 9 percent following news that the cost to clean up the oil spill in the Gulf of Mexico has spiraled to nearly $1.6 billion and amid worries about the company's dividend.