The Dow Jones Industrial Average dropped 45.27 points (0.47 per cent) to 9498.93 at the market close, paring earlier losses and closing lower for the second straight session.
The tech-rich Nasdaq composite skidded 19.71 points (0.97 per cent) to 2005.83 and the broad-market Standard & Poor's 500 index lost 7.99 points (0.78 per cent) to a preliminary close at 1020.94.
"Widespread losses in foreign markets, which were led by a 6.7 per cent decline in the Shanghai Composite, have prompted valuation concerns that are interfering with the bullish sentiment," Patrick O'Hare of Briefing.com said.
"We suspect the understanding that September has been the weakest month historically for the stock market hasn't been lost on participants either," he added.
US stocks climb on oil rallyStocks tumble amid investors’ worries