Wall Street stocks closed mixed yesterday after a key US business indicator showed surprising strength and intensified worries that inflationary pressures were building in the economy. The Dow Jones Industrial Average finished up 36.52 points or 0.35 per cent at 10,596.26, while the Nasdaq composite index tumbled 2.35 per cent.

Hardest hit were growth stocks such as technology shares and interest rate sensitive stocks such as financial issues. But economically sensitive cyclical issues, such as the chemicals, paper and metals sectors, rallied and helped to boost the Dow.

The market tumbled after the National Association of Purchasing Management reported its index of manufacturing activity rose to 55.2 from a 52.8 level in April.