Wall Street goes down as caution sets in

Wall Street took a breather from a month-long rally, with investors bracing for higher volatility going forward as the best quarter in a year nears its end.

The Dow Jones industrial average shed 22.86 points, or 0.21 percent, to 10,835.28. The Standard & Poor's 500 Index dipped 2.97 points, or 0.26 percent, to 1,144.73. The Nasdaq Composite Index fell 3.03 points, or 0.13 percent, to 2,376.56.

European shares closed lower. The FTSEurofirst 300 index of top European shares fell 0.55 percent to close at 1064.88. Weaker retail shares after disappointing figures from Swedish fashion group Hennes & Mauritz, the world's third-largest clothing retailer, proved a drag on market sentiment.

The Nikkei average clawed up 0.7 percent on window-dressing before the end of Japan's financial first half, but it pared earlier gains as the yen's strength revived and resistance held strong.

The benchmark Nikkei ended up 63.62 points at 9,559.38, while the broader Topix .TOPX gained 0.5 percent to 846.97.