By Meg Richards
The Associated Press

NEW YORK - A wave of bombings in Turkey over the past week revived fears of terrorism, but the attacks didn't send stock prices plunging. While the market closed the week with a loss, it drew strength from the steadily improving U.S. economy.

Positive reports on employment and the economy helped limit losses.

Still, the violence resonated with investors, who saw the markets drop sharply following the terrorist strikes of Sept. 11, 2001. For many it was a reminder of the economy's vulnerability, said Todd Salamone, director of trading at Schaeffer's Investment Research in Cincinnati.

"When we see attacks on other people's soil, it brings that fear back and may cause investors to take action," Salamone said. "But they might not act as urgently as they would if it were happening here."

The fact that the attacks were not domestic and that they happened in a country that is not a large trading partner with the United States lessened the blow considerably, said Richard J. Nash, chief market strategist at Victory Capital Management.

In addition to the attacks, economists said trade issues with China, concern over protectionist policies and a weakening dollar also contributed to the week's declines. Skittish investors had many reasons to seek safer positions in the bond market and in value stocks.

For many, however, the unpredictability of terrorism remains a most unnerving factor, said Sherry Cooper, chief economist at BMO Nesbitt Burns. The uncertainty of what might happen next, and whether the next strike might be closer to home, could cause nervousness.

"If all that's going to happen is what happened, then that's fine. But none of us know if this is all there is," Cooper said. "If you get a major event on U.S. soil, there's no question it would cause a great deal of upset. But we saw from 9-11 the resilience of the economy."

The market's reaction to domestic terrorism is likely to be more contained in the future, "because it's less of a surprise," said Josh Feinman, chief economist for Deutsche Asset Management.

"It's unfortunate that this is the world we live in now, but it's reality," Feinman said. "People recognize that they are going to have to adjust to the fact that we're going to see terrorist strikes."