The Dow Jones industrial average fell 128 points or 1.00% to 12,761. The Standard & Poor's 500 Index dropped 12 points or 0.92% to 1,339. The Nasdaq Composite Index lost 25 points or 0.89% to 2,901.

European markets were broadly lower, with the Stoxx Europe 600 dropping 1.0%. Euro zone finance ministers didn't approve a second bailout for Greece demanding the Hellenic parliament to first approve the new austerity measures.

In the macroeconomic domain, the US trade deficit was $48.8 billion in December, slightly wider than the $45.5 billion expected, while a preliminary reading of consumer sentiment in February came in worse-than-expected, weighing on sentiment.

Gold slid 1.3% to $1,718 an ounce while crude-oil futures fell 1.7% to $98.13 a barrel.