Chip sector losses hit Nasdaq; IBM supports Dow

A weak outlook from Texas Instruments weighed on the Nasdaq and pushed an index of chip makers below a key technical level in a worrisome sign for the market's six-month uptrend.

The Dow Jones industrial average dipped 1.29 points, or 0.01 percent, to finish at 12,213.09. The Standard & Poor's 500 Index shed 1.80 points, or 0.14 percent, to end at 1,320.02. The Nasdaq Composite Index fell 14.05 points, or 0.51 percent, to close at 2,751.72.

European shares ended lower after fresh Libya violence pushed oil prices higher and fuelled economic growth fears.

The FTSEurofirst 300 of top European shares ended 0.2 percent lower at 1,144.75 points after a choppy session, with volumes at 108 percent of the 90-day daily average.

Meanwhile, Japan's Nikkei average broke above a key technical level and rose for a second day on Wednesday after a pullback in oil prices, but worries about the potential for unrest to spread in the Middle East kept investors on edge.

The benchmark Nikkei rose 0.6 percent or 64.31 points to 10,589.50. The broader Topix index also gained 0.6 percent, to 944.29. The Nikkei had earlier traded above its closely watched 25-day moving average, which is now at 10,627.77.