Stocks opened down nearly 2 percent on Wednesday following a sharp snap-back rally in the last session as investors' well-worn fears about the economy and high levels of public debt looked set to generate more volatile trading.

The Dow Jones industrial average was down 205.06 points, or 1.82 percent, at 11,034.71. The Standard & Poor's 500 Index was down 20.19 points, or 1.72 percent, at 1,152.34. The Nasdaq Composite Index was down 64.20 points, or 2.59 percent, at 2,418.32.

(Reporting by Ryan Vlastelica)