Stocks clawed back from steep losses to finish narrowly mixed Wednesday following several reports on the euro zone that helped soothe fears over the region's debt crisis.

Italian Prime Minister Mario Monti and French President Francois Hollande agreed to consider all measures to boost European economic growth, including eurobonds, according to a report.

Meanwhile, traders speculated that European Central Banks may be making plans to backstop the euro zone should the crisis worsen.

“The commentary around the euro zone remains bearish,” said Kenny Polcari, managing director at ICAP Equities. “Central banks will eventually come together and throw more money at the issue.”

The Dow Jones Industrial Average slipped 6.66 points, or 0.05 percent, to close at 12,496.15, after being down more than 190 points at its session low. H-P and Intel led the laggars, while BofA rallied.

The S&P 500 added 2.23 points, or 0.17 percent, to end at 1,318.86. The Nasdaq rose 11.04 points, or 0.39 percent, to finish at 2,850.12. The CBOE Volatility Index, widely considered the best gauge of fear in the market, closed near 22.

Among the key S&P sectors, utilities ended lower, while materials ended higher.

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