US stock prices plunged yesterday in a crushing across-the-board selloff that left the Dow Jones industrial average with its worst one-day point loss ever and drove the Nasdaq market down almost 10 per cent as higher-than-expected inflation numbers traumatized Wall Street.

The Nasdaq composite index dropped 355.10 points, or 9.66 per cent, to 3.321.68, its worst single-day point drop ever and leaving it with a loss for the week of 1,126.5 points. It is now down 34.2 per cent from its all-time high close of 5,048.62 - putting it well into bear territory, which is defined as a drop of more than 20 per cent from the record.

The blue chip Dow Jones Industrial Average DJI plummeted 616.23 points, or 5.64 per cent, to 10,307.32, also its worst one-day point loss ever. It fell 7.2 per cent for the week.