US stocks ended a volatile day lower as investors remained cautious over the lack of progress in Washington budget talks.

The budget jitters also helped the Australian dollar hold its higher position this morning at 93.67 US cents.

On Wall Street the Dow Jones Industrial Average lost 61.33 (0.40 per cent) at 15,273.26.

The broad-based S&P 500 dipped 4.65 (0.27 per cent) to 1,692.77, while the tech-rich Nasdaq Composite Index declined 7.15 (0.19 per cent) to 3,761.10.

Stocks veered in and out of positive territory in a narrow range throughout the day.

Investors are concerned because of an October 1 deadline for Congress to fund the US government. Failure to reach a deal could force parts of the government to shut down.

“It’s very difficult for the market to go up from here with all the shenanigans in Washington,” said Mace Blicksilver, director at Marblehead Asset Management.

JPMorgan Chase was by far the best-performing company in the Dow, rising 2.7 per cent, amid reports that it could pay $US11 billion ($A12 billion) to settle a range of regulatory issues.

Though large, such a payout would remove some uncertainty overhanging the giant bank.

Online retail giant Amazon slipped 0.5 per cent after unveiling a pair of new tablet devices. The company also released a new version of its Kindle Fire for $US139, down from $US199.