The Dow Jones Industrial Average was down 24.42 points (0.19 percent) to 13,114.6 in closing trade.

The broad-market S&P 500 lost 6.81 points (0.48 percent) at 1,491.85, while the tech-rich Nasdaq Composite shed 22.44 points (0.74 percent) at 2,990.15.

The White House and Congress have until the end of the month to reach a compromise on how to avert a year-end crisis that could lead to stiff tax hikes and drastic budget cuts.

Experts say a plunge over the so-called "fiscal cliff" could take the world's biggest economy back into recession.