WALL Street stocks pulled back sharply as investors moved to secure more gains from the market's turnaround amid renewed worries the Federal Reserve will raise interest rates to fight inflation.

The Dow Jones industrial average dropped 139.67 points to close at 7085.65. The bluechip barometer had rebounded by nearly 500 points in the last seven sessions, closing at record highs on Monday and Tuesday.

Broader stock indicators also retreated, weighed down by another weak day in the bond market.

Declining issues outnumbered advancers by nearly two to one on the New York Stock Exchange. The Standard and Poor's 500 stocklist fell 12.14 to 815.62 and the NYSE composite index fell 5.82 to 424.95. The Nasdaq composite index fell 5.38 to 1322.92 and the American Stock Exchange composite index fell 0.01 to 570.50.