Market swings continue

Stocks plunged again Wednesday as investors turned their attention back to the weak economy and Europe's debt problems. More than half of the big gains that followed a US Federal Reserve pledge to extend super-low interest rates vanished.

The Dow Jones industrial average fell 232 points, or 2.1 per cent, to 11,007 in afternoon trading.

The average plummeted more than 300 points within minutes of the opening bell and was down as many as 468 points by late morning.

On Tuesday, the Dow gained 429 points after the Fed said it planned to keep interest rates extremely low, at least through the middle of 2013.

The Standard & Poor's 500 fell 13 points, or 1.1 per cent, to 1,160 in afternoon trading. The Nasdaq fell 24, or one per cent, to 2,458.

Gold rose above US$1,800 per ounce for the first time as money poured into investments considered safe at a volatile time for the financial markets.

Gold was up US$41.70 per ounce to US$1,784.90 in afternoon trading, after earlier climbing as high as US$1,801.

The 10-year Treasury note, which has also served as a haven, also rose sharply. Its yield fell to 2.20 per cent from 2.26 per cent late Tuesday.

It had reached a record low of 2.03 per cent on Tuesday. A bond's yield falls when its price rises.