“You have to wonder why we were up in the first place,” said Joe Saluzzi, co-manager of trading at Themis Trading of the recent rally. “European problems haven’t gone away, volume’s been light, earnings haven’t been that great—I think the rally was overblown.”

The ongoing sovereign debt woes in Europe took center stage once again as euro zone finance ministers agreed to lend up to 100 billion euros to Spain so it can recapitalize its banks . Ten-year Spanish bond yields hit euro-era highs amid worries that the country will eventually run out of funds and need a sovereign bailout.

European shares closed sharply lower , while the euro plunged to a two-year low against a basket of major currencies. (Read More: Euro vs. Dollar—Which Is Ugliest? )

“This seems to be a little bit of a pullback,” said Gordon Charlop, managing director at Rosenblatt Securities. “[But] investors are looking at each stock story differently, so we’re not seeing behavior based on macro-events and that kind of behavior is overall a benefit to the market right now.”