Stocks ran into a wall of worry Tuesday as violence erupted on the Korean peninsula, concerns about Europe’s debt crisis expanded and the Federal Reserve issued a dour economic outlook.

The Dow Jones industrial average fell 142 points, or 1.3%, to close at 11,036. The S&P 500 fell 17 points, or 1.4%, to 1,181. The Nasdaq slid 37 points, or 1.4%, to 2495.

The retreat was sparked by an exchange of artillery fire along the disputed sea border between North and South Korea Tuesday morning. The skirmish, which killed two South Korean soldiers and wounded several civilians, was one of the worst since the Korean War of the 1950s ended in armistice.

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(Source: CNN Money)