STOCKS fell amid worries that a key US unemployment report today will include inflationary trends.

On Wall Street, the Dow Jones industrial average dropped 30.29 points to close at 5667.19, after retreating from a gain of more than 25 points at the opening. Broadmarket indexes also turned lower after a strong start.

The Nasdaq market retreated from Wednesday's record close as key technology issues such as Intel, Sun Microsystems and Cisco Systems declined.

The financial markets have plunged after recent employment reports, which reignited worries that rising numbers in jobs and rising wages would translate into rapid inflation by creating too much spending power and too much demand.

The NYSE's composite index fell 2.28 to 361.10 and the Standard and Poor's 500-stock index fell 5.41 to 673.03.