* TSX down 189.14 points, or 1.3 percent, at 14,413.74
* Eight of 10 main index sectors decline
* Potash slips after reporting results
By John Tilak
TORONTO, Jan 29 (Reuters) - Canada's main stock index dropped 1.3 percent on Thursday, extending the previous session's sharp fall as investors remained nervous about the Federal Reserve's outlook for raising U.S. interest rates.
Weakness in the price of U.S. crude oil, another factor hurting the market, helped send down shares of energy producers nearly 3 percent.
The Fed said on Wednesday the U.S. economy was expanding "at a solid pace," signaling to investors the U.S. central bank was on track to raise rates later this year.
The benchmark TSX, which tumbled about 1.6 percent on Wednesday, slipped to its lowest in a week, while measures for market volatility also rose.
"We have a new normal, which is a more volatile market than in the past," said Douglas Davis, vice chairman at Davis-Rea.
He said the prospects for the Canadian equity market looked bleak given the pressure on oil prices.
The Toronto Stock Exchange's S&P/TSX composite index was down 189.14 points, or 1.3 percent, at 14,413.74. Eight of the 10 main sectors on the index were in the red.
Financials, the index's most heavily weighted sector, fell 1.3 percent. Toronto Dominion Bank gave back 1.5 percent to C$50.43, and Bank of Montreal lost 1.4 percent to C$75.35.
Shares of energy producers slipped 3.2 percent. Canadian Natural Resources Ltd declined 3.5 percent to C$34.03, and Suncor Energy Inc shed 3.1 percent to C$35.61.
In corporate news, Potash Corp of Saskatchewan reported a better-than-expected quarterly profit, helped by strong potash sales and lower costs. The stock slipped 0.8 percent to C$44.99. (Editing by James Dalgleish)