US equities recouped some of their earlier losses, helped by reports bond insurer Ambac was progressing toward a deal to raise capital and upbeat comments from Amazon.

The benchmark S&P 500 index closed 0.3 per cent lower at 1,326.75 points, while the Dow Jones industrial average fell 0.4 per cent to 2,260.28. The Nasdaq composite edged up 0.1 per cent to 2,260.28.