A MILD rebound in stocks faltered on Wall Street today as bonds again lost their footing, sending interest rates higher despite a report on employment that had calmed some inflation fears.

On Thursday the Dow plunged nearly 77 points and broader indexes tumbled even further as the latest evidence of a surging US economy sent investors running for cover before yesterday's employment report.

The Nasdaq market one of Thursday's biggest losers as investors locked in profits on the recent rally in technology and smaller company shares managed a gain on the day, but slid sharply with the market after surging more than 15 points earlier in the afternoon.