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 The Federal Reserve's emergency cut of its federal funds rate by 0.75 basis points to 3.50 percent eventually helped calm U.S. markets, but it was already clear in Tuesday's trading that investors had doubts about the potency of the Fed's actions. Rate cuts typically take months to work their way into the economy.
Meanwhile, a disappointing forecast from Apple Inc. showed how fragile investor sentiment is.
The maker of the iPod issued a forecast for its fiscal second quarter that said sales would likely grow by 29 percent. The figure would represent faster growth than in earlier years but fell short of what Wall Street had been expecting.
Apple's news appeared to reveal fresh concerns about the prospects for consumer spending. As consumers account for more than two-thirds of the economy, investors are keen on learning whether retailers and other companies will have a harder time prying open wallets.
Shares of Apple fell more than 11 percent in premarket trading.
Dow Jones industrial average futures fell 157, or 1.31 percent, to 11,794. Futures for the broader Standard & Poor's 500 index fell 18.90, or 1.44 percent, to 1,290.40, and the Nasdaq composite index fell 32.00, or 1.78 percent, to 1769.00.
The decline in futures, while substantial, appeared modest compared with the heavy pressure to sell investors faced by the opening bell Tuesday. The Dow fell by as much as 465 points in the first minutes of trading before recovering from its steepest losses to end the day down 128.11, or just over 1 percent, at 11,971.19.
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 Bond prices were little changed Wednesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, stood at 3.41 percent, flat with late Tuesday. The dollar was mixed against other major currencies.
Light, sweet crude fell $1.28 to $87.93 per barrel in premarket electronic trading on the New York Mercantile Exchange.
While investors worldwide remain concerned about the health of the U.S. economy, the Fed's rate cut and Wall Street's ability to come off its lows Tuesday helped drive a rebound in Asian trading Wednesday.
Japan's Nikkei stock average closed up 2.04 percent after falling 5.7 percent Tuesday. Similarly, Hong Kong's Hang Seng index surged 10.72 percent, showing its biggest gain in 10 years after falling 13.7 percent in the previous two sessions.
In morning trading in Europe, however, stocks fell. Britain's FTSE 100 fell 1.25 percent, Germany's DAX index fell 2.16 percent, and France's CAC-40 fell 2.10 percent.
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On the Net:
New York Stock Exchange: http://www.nyse.com/
Nasdaq Stock Market: http://www.nasdaq.com/
[Associated Press; By TIM PARADIS]
Copyright 2007 The Associated Press. All rights reserved. This
material may not be published, broadcast, rewritten or
redistributed.
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