Stocks closed down for a fourth session, but well off their lows, after ECB chief Mario Draghi disappointed markets by not undertaking immediate steps to stabilize the euro zone. While Draghi left the door open for additional policy measures in the coming weeks, investors were expecting concrete actions today after the central banker pledged to "do whatever it takes" to save the euro last week.

The Dow Jones Industrial Average, S&P 500and Nasdaqall fell but closed well off their worst levels. The Dow was down 192 points at the lows.

The Dow lost 92.18 points, or 0.71 percent, to close at 12878.88, while the S&P 500 dropped 10.14 points, or 0.74 percent, to end at 1365.00. The Nasdaq shed 10.44 points, or 0.36 percent, to close at 2909.77.

Alcoa and JPMorgan led the blue-chip decliners. Wal-Mart advanced.

Energy and materials were the weakest S&P sectors, while consumer discretionary gained.

The CBOE Volatility Index, widely considered the best gauge of fear in the market, fell below 18.