Stocks tumbled on Wall Street yesterday after stark declines in Asian stocks sent prices down in Europe and Latin America and a surprisingly low US Unemployment report set off inflation fears at home.

The Dow Jones industrial average closed down 101.92 points at 7,581.32, easing from an earlier drop of 195 points. The plunge snapped a three-day streak of listless trading that had left investors feeling the dramatic swings that shook investors last week were over.

The Dow remains up more than 17 per cent for the year, despite the day's 1.5 per cent drop, but has failed to return to its 7,715.41 level before an October 27 selling spree.