Concern over violence in Libya weighs down US stocks

Concern over violence in Libya weighs down US stocks

The situation in the north African nation has weighed on markets since the violence began there last month and concern was renewed as Muammar Gaddafi's regime conducted air strikes against the oil-rich city of Ras Lanuf. Broadcaster Al Jazeera reported that three bombs were dropped on an oil site near the city.

But analysts warned the uncertainty in the region will not affect the two-year-old bull market in the long run.

"You'd be crazy not to be concerned about geopolitical risks," Philip Dow of RBC Wealth Management told Bloomberg financial news.

"Oil touches everything. However, if youve paid attention to every near-term uncertainty of the last two years, you would have missed the big move in stocks. You cant see the forest for the trees. Theres not enough evidence that this could derail the global recovery. This is an expansion."

The blue-chip Dow Jones Industrial Average slid 1.29 points, or 0.01 percent, to 12,213.09.

The broader Standard and Poor's 500 Index lost 1.8 points, or 0.14 percent, to 1,320.02.

The technology-heavy Nasdaq Composite Index declined 14.05 points, or 0.51 percent, to 2,751.72.

The US currency declined slightly to 71.92 euro cents from 71.93 euro cents Tuesday. The dollar was up against the Japanese currency to 82.74 yen from 82.66 yen.