Stocks fall on investor anxiety over Syria

Fears of an escalating conflict in Syria rippled across financial markets Tuesday, sinking stocks, lifting gold and pushing the price of oil to the highest in a year and a half.

The increasing possibility of U.S. military strikes raised worries on Wall Street that energy trade in the region could be disrupted, raising fuel costs for consumers and business.

"If Syria becomes drawn out and becomes a long-term issue, it's going to show up in things like gas prices," said Chris Costanzo, investment officer with Tanglewood Wealth Management.

The Dow Jones industrial average fell 170.33 points to 14,776.13, the lowest in two months. The Standard & Poor's 500 index fell 1.59 percent, to 1,630.48, and the Nasdaq composite fell 2.16 percent, to 3,578.52.

The impact wasn't just in stocks. Gold prices advanced and government bond prices jumped because traders see those investments holding their value better in times of uncertainty.

Gold rose $27.10 to $1,420.20 an ounce while the yield on the benchmark U.S. 10-year Treasury note fell to 2.71 percent from 2.79 percent.