S&P touches highest level since 2008, then falls

The S&P 500 lost 4.96 points to close at 1,413.17, with bank stocks the only group to record a gain. Earlier in the day, the S&P climbed to 1,426, its highest since May 19, 2008.

Clark Yingst, chief market analyst at the securities firm Joseph Gunnar, said he thought traders were swayed by reports that the ECB may buy bonds to bring down the borrowing costs of Spain, Italy and other countries.

Yingst pointed to currency moves and bank stocks as evidence. JPMorgan Chase, Morgan Stanley and other companies with ties to Europe rose more than the overall market. The euro surged 1 percent to $1.246.

"It's very much a news- and rumor-driven market," Yingst said.

In other trading, the Dow Jones industrial average fell 68.06 points to 13,203.58, and the Nasdaq composite index lost 8.95 points to 3,067.26. Crude oil hit its highest price in three months, rising $1.32 to $97.58.

Sean Clark, chief investment officer at Clark Capital Management Group, an investment advisory firm, saw no major news driving the market. Trading volume has been light in recent days.

Clark said that part of the explanation for the stock market's steady climb this month is that money managers are afraid of missing out on the rally.

"A lot of fund managers have underperformed this year, and I think they're feeling pressure," he said. "There may have been some panic buying over the last couple of weeks."

Facebook's stock lost 85 cents to $19.16 after one of its earliest backers, venture capitalist Peter Thiel, sold the bulk of his stake in the social network. Last week was the first time some insiders could sell their shares. Facebook went public in May at twice the current price, $38.