THE Dow Jones industrial average plunged nearly 140 points as strong economic data reignited inflation fears on Wall Street.

The Dow, which on Thursday closed above 7,300 for the first time, dropped 138.88 points to close at 7,194.67.

Declining issues outnumbered advancers by three to two on the New York Stock Exchange, with 991 up, 1,479 down and 896 unchanged. NYSE volume totalled 485.78 million shares, against 457.18 million in the previous session.

The Nasdaq composite index fell 12.84 to 1340.74, and the American Stock Exchange composite index rose 3.25 to 586.72.