WASHINGTON, June 12 (Reuters) - Fourteen people were wounded after two men opened fire at each other in a busy entertainment district in downtown Austin, Texas early on Saturday, police said, adding that one of the suspected shooters remained at large.

Gunfire erupted at about 1:30 a.m. in the Sixth Street area, a popular nightlife destination in the state capital, Austin Police Department Interim Chief Joseph Chacon said in a news conference on Saturday afternoon.

"This does appear to be an isolated incident between two parties," he said. "Most of the victims were innocent bystanders."

Police officers who were nearby rushed to the scene where they applied tourniquets and performed CPR on victims, Chacon said.

Two of the injured were in hospital in critical condition and the other 12 were in stable condition. There were no deaths, Chacon said.

The Austin Police Department said on Saturday evening that one suspect had been arrested with the help of the U.S. Marshals Lone Star Fugitive Task Force, and that officers were continuing to follow up on leads to apprehend the remaining suspect.