Wall Street tumbles for a second day

Wall Street tumbled again at Wednesday’s open amid continuing investor uneasiness about the health of the economy and corporate earnings after disappointing reports from big names like Apple Inc. and Motorola Inc. Bond prices rose sharply as investors sought the safety of government-backed debt.

Wall Street also fell in step with markets in Europe Wednesday, which pulled back after European Central Bank President Jean-Claude Trichet indicated that the ECB would not follow the Federal Reserve’s lead and cut interest rates, according to Dow Jones Newswires. The Fed’s decision Tuesday to cut its federal funds rate by 0.75 basis points to 3.5 percent eventually helped calm U.S. markets, but it was already clear that investors had doubts about the potency of the Fed action. Rate cuts typically take months to work their way into the economy.

Meanwhile, a disappointing forecast from Apple showed how fragile investor sentiment is.