The Dow Jones industrial average (INDU) fell 27 points, or 0.2%, to end at 12,939. The S&P 500 (SPX) lost 4 points, or 0.3%, to 1,358. The Nasdaq (COMP) sank 15 points, or 0.5%, to 2,933.
"It seems the market is taking a breather and waiting for its next catalyst after the strong run we've had," said David Levy, a portfolio manager at Kenjol Capital Management in Austin, Texas. "A period of consolidation or even a slight pullback wouldn't be surprising given the overbought market conditions."
On Tuesday, the Dow briefly rose above 13,000 -- a level not seen since mid-May 2008 -- before falling back. So far this year, the Dow is up 6%, the S&P 500 is up over 8% and the Nasdaq is up 13%.
Stocks were pressured early Wednesday by news that an index of business activity in the eurozone contracted in January. That came after a reading on China manufacturing showed a slow pace of growth.
Meanwhile, investors remain skeptical about the latest bailout for Greece, which eurozone finance ministers approved Tuesday after weeks of negotiations and market speculation.
"The new bailout and restructuring deal is a welcome short-term reprieve," said John Praveen, chief investment strategist of Prudential International Investments Advisers. "However, it is unclear how successful it will be over the longer term in addressing the debt problem."
The dollar rose against the euro, the British pound and the Japanese yen.
Oil for April delivery slipped 27 cents to $105.98 a barrel.
Gold futures for April delivery rose $12.80 to end at $1,771.10 an ounce.
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