NEW YORK - US STOCKS opened sharply lower on Wednesday amid uncertainty over government efforts to stem a global financial crisis, with a profit warning from electronics retailer Best Buy zapping sentiment.

The Dow Jones Industrial Average slid 183.99 points (2.12 per cent) to 8,509.97 in opening trade and the Nasdaq dropped 26.43 points (1.67 per cent) to 1,554.47.

The broad Standard & Poor's 500 index slid 19.15 points (2.13 per cent) to 879.80.

Wall Street remained stuck deep in the red on Tuesday for the second day in a row, despite a blip upward on news that the government was expanding its loan modification program for struggling homeowners in a bid to put a floor under spiking home foreclosures.

The Dow tumbled 176.58 points (1.99 per cent) to 8,693.96, the Nasdaq dropped 35.84 points (2.22 per cent) to 1,580.90 and the S&P 500 index retreated 20.26 points (2.20 per cent) to 898.95.

'In this very nervous stock market, good news helps, but only for a short period and does not generate cumulative buying,' said Mr Al Goldman of Wachovia Securities, citing Monday's short-lived positive response to news that Fannie Mae and Freddie Mac, the government-rescued mortgage finance giants, would be working to ease mortgage payments.

'Investors continue to accentuate the negatives and eliminate the positives. This is a sign that bottom fishers/bargain hunters are not ready to buy at these levels,' he added. -- AFP