Wall Street stocks pulled back again as inflation jitters spurred a round of profit-taking on the bond market's recent rally, pushing interest rates higher. The Dow Jones industrial average fell 58.70 to close at 7,848.01 after surrendering an early 23-point gain.

Broader stock indicators also posted modest losses, pressured by a weak bond market, where interest rates rose after moving towards the lowest level in more than a year-and-a-half on Tuesday.

Bonds fell after a series of robust economic readings that aggravated inflation worries. The commerce department reported that a record surge in demand for electrical equipment during August caused an unexpected 2.7 per cent jump in orders to durable goods factories.

Declining issues outnumbered advancers by a 10to-nine margin on the New York Stock Exchange, with 1,372 up, 1,499 down and 537 unchanged. NYSE volume totalled 524.89 million shares.